Efficiency Is an Important Goal Because When Markets Are Efficient

question 53

Multiple Choice

Efficiency is an important goal because when markets are efficient:

• A)there is less income inequality.
• B)the poor benefit more than the wealthy.
• C)there are more resources available to achieve other goals.
• D)there is no need for government intervention in the economy.

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Definitions:

North American

Pertaining to or relating to the continent that comprises Canada, the United States, Mexico, and the countries of Central America.

Trade Agreement

A contract between nations regarding their trade relationships, including terms on tariffs, trade restrictions, and other aspects of international trade.

Tariffs

Taxes imposed by a government on imported goods, often used to protect domestic industries or retaliate in trade disputes.

Axis Alliance

A military and political alliance formed during World War II between Germany, Italy, and Japan, which opposed the Allied Powers.