Which of the Following Statements Is Most Likely True

question 83

Multiple Choice

Which of the following statements is most likely true?

• A) Japan eliminated all protectionist policies after WWII.
• B) Nearly all countries have some neomercantilist policies.
• C) China is one of the few countries with protectionist policies.
• D) EU countries are supportive of U.S. neomercantilist policies.

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Definitions:

Government Intervention

Actions taken by a government to affect or interfere with market activities or uphold laws for economic or social outcomes.

Markets Fail

Occurs when a market economy does not efficiently allocate resources, leading to outcomes like monopolies, public goods issues, or externalities.

Efficient Allocation

The distribution of resources in a way that maximizes the net benefits to society or the economy.

Efficiency

A measure of how well resources are used to achieve a goal, minimizing waste.