Question

What is one downside for consumers to competition in a free-enterprise system?

Consumers must be knowledgeable.
Consumers have limited choices.
The quality of goods often suffers.
The price of goods often decreases.

Answer 1

Consumers must be knowledgeable.

Explanation: Competition creates many options and variations, so consumers need information and awareness to choose the best products; the other statements are generally incorrect (competition tends to increase choices, improve quality, and lower prices).