The Idea That Markets Work Efficiently

question 235

Multiple Choice

The idea that markets work efficiently:

• A) refers to the fact that self-interest can be aligned with social interest.
• B) means that trade-offs can be reduced by channeling greed toward good ends.
• C) suggests that there is never any need for government regulation, taxes, or subsidies.
• D) has been known for many centuries.

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Definitions:

Trustbusters

Individuals or government entities that work to prevent or break up monopolies and trusts, aiming to encourage competition in the marketplace.

Alcoa Case

A landmark antitrust case in the United States that significantly expanded the concept of monopolistic practices and market domination by the Aluminum Company of America.

Sherman Antitrust

A landmark federal statute in the United States that prohibits monopolistic business practices, aiming to promote fair competition for the benefit of consumers.

Sherman Antitrust Act

A foundational statute in United States antitrust law passed in 1890 that outlaws monopolistic business practices and promotes competition in the marketplace.