Q1. The answer is B. Competition encourages innovation, which causes growth. In the free market system, the prices for goods and services depend on the open market where the laws of supply and demand are free from any authority, such as government. In this form of market, free competition will encourage innovations and those innovations can cause growth. ....... Q2. The answer is B. the need to rank choices in order of importance. In the federal system of America, the state and the federal government pursue conflicting economic goals. As the result, the need to rank choices in order of importance emerges.
