Which of the Following Is an Argument in Favor of Judging

question 79

Multiple Choice

Which of the following is an argument in favor of judging competitiveness by performance rather than structure?

• A) Judgment by performance requires that each action of a firm be analyzed on a case-by-case basis, which is very time-consuming and expensive.
• B) Under the judgment by structure criterion, a firm may be breaking the law if it does what it's supposed to be doing: producing the best product it can at the lowest cost.
• C) Courts know little economic theory.
• D) Structure can be a predictor of future performance.

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Definitions:

Extremism

The holding of extreme political or religious views that may lead to actions outside of societal norms.

Currency Control

Regulations imposed by a government on the purchase and sale of foreign currencies by residents or on the transfer of currencies across national borders.

Deregulation

The reduction or elimination of government power in a particular industry, often to increase competition and foster innovation.

Currency Control

Government policies or regulations that restrict the exchange of the domestic currency for foreign currencies.