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What is one effect of the profit motive?

  • Question 1c of 10 - Unfair business practices

  • Maximum Attempts: 1
  • Question Type: Multiple Choice
  • Maximum Score: 2
  • Question: What is one effect of the profit motive?
  • Answers:
  1. It pushes companies to seek to eliminate competition.
  2. It gives companies an incentive to raise wages.
  3. It enables the government to have a budget surplus.
  4. It prevents foreign companies from underselling domestic producers.

The correct answer is: It pushes companies to seek to eliminate competition. Eliminating competition enables producers to charge higher prices and make greater profits.

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