In a World of Perfect Knowledge and Communication, Competitive Markets

question 8

Multiple Choice

In a world of perfect knowledge and communication, competitive markets, and no uncertainty,

• A) there would be neither economic profits nor economic losses.
• B) economic profits would exist, but losses would be eliminated.
• C) economic profits and losses would exist to a greater degree than presently is the case.
• D) there would be economic profits; there is not enough information to comment on economic losses.

---

Definitions:

Intervention

An action or process of intervening; a measure or practice applied to modify a situation, often used in health, social care, or policy contexts.

Empowerment

The process of increasing the capacity of individuals or groups to make choices and to transform those choices into desired actions and outcomes.

Parents

Adults who have a child or children, either biologically, through adoption or foster care, or by being a figure of parental guidance.

Communication

The exchange of information, ideas, feelings, or messages between individuals through various means, including verbal, non-verbal, written, and digital channels.