Which of the following statements accurately explains how an element of the free
enterprise system has impacted the Texas economy?(1 point)
Limited Government: When railroads created a monopoly and charged farmers
unreasonable shipping rates, the Texas government created the Railroad Commission to
regulate the industry and ensure fair rates.
Profit Margin: Boom-and-bust cycles have impacted all industries in Texas except the oil and
gas industry, which has consistently made profits due to high demand since the Spindletop
oil strike in 1901.
Global Competition: Economic profits in Texas decreased significantly after the North
American Free Trade Agreement gave Mexico an unfair advantage over Texas businesses
near the border.
Supply and Demand: After the Civil War, a surplus of cattle and high demand for beef in the
North increased prices and led to a boom in the Texas cattle industry