Question

What federal agency has among its missions ensuring competition? A. Consumer Product Safety Commission B. Federal Trade Commission C. Commerce Department D. Fair Trade Commission

Short answer

B. Federal Trade Commission

Step-by-step solution

Understand the Question

Identify the task, which is to determine which federal agency has among its missions ensuring competition.

Review the Given Options

Examine the list of agencies provided in the question: A. Consumer Product Safety Commission B. Federal Trade Commission C. Commerce Department D. Fair Trade Commission

Research Each Agency's Mission

Check the primary missions of each agency to see which one includes ensuring competition.

Identify the Correct Agency

Note that the Federal Trade Commission (FTC) is known for its role in promoting consumer protection and the elimination and prevention of anti-competitive business practices.

Verify Your Answer

Confirm that the Federal Trade Commission’s mission indeed includes ensuring competition by preventing monopolies and promoting free and fair markets.

Key concepts

Federal Trade Commission (FTC)

The Federal Trade Commission (FTC) is an independent agency of the United States government, established in 1914. Its main goal is to protect consumers and ensure a strong, competitive market.
This agency enforces laws against deceptive advertisements and fraudulent business practices. It also works to prevent monopolies and anti-competitive mergers.
By overseeing a wide range of business activities, the FTC helps keep the marketplace fair and open. Its work ensures that consumers have access to a variety of choices and fair prices.
The FTC's actions benefit both businesses and customers by fostering innovation and maintaining trust in the market.

competition in markets

Competition in markets is crucial for a healthy economy. It encourages businesses to improve their products, services, and prices. When companies compete, they strive to attract more customers by offering better deals or higher quality.
Without competition, a single company could dominate the market, leading to higher prices and fewer choices for consumers. This situation is known as a monopoly.
The FTC plays an essential role in maintaining competition by preventing monopolies and other unfair business practices. By enforcing antitrust laws, the FTC ensures that no single company can unfairly dominate a market.
This protection helps small businesses thrive and promotes innovation across various industries.

consumer protection

Consumer protection involves safeguarding buyers from unfair, deceptive, or harmful practices in the marketplace. The FTC is a key player in this area, working to ensure that consumers are treated fairly.
Some of the FTC's activities in consumer protection include:

• Investigating and acting against false advertising
• Preventing scams and frauds
• Enforcing laws that ensure product safety and accurate labeling

By upholding these standards, the FTC helps consumers make informed decisions and protects them from being cheated.
Additionally, consumer protection efforts boost confidence in the market, encouraging more people to participate in economic activities.

anti-competitive practices

Anti-competitive practices are actions that reduce or eliminate competition in the marketplace. These behaviors can harm both consumers and other businesses.
Some common anti-competitive practices include:

• Price fixing: When businesses agree to sell a product at a set price, eliminating competition
• Bid rigging: Colluding to manipulate the winner of a bidding process
• Market division: Agreements between competitors to split markets and avoid competition
• Exclusive dealing: Forcing customers or suppliers to work only with one company

The FTC actively monitors and takes action against these practices. By doing so, it ensures that businesses compete on a level playing field and that consumers benefit from lower prices and more choices.
The overall goal is to maintain a dynamic and healthy market where everyone has an opportunity to succeed.