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.
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.
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.
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.