Which of the Following Is True of the Beliefs of Economic

question 46

Multiple Choice

Which of the following is true of the beliefs of economic liberalism,as exemplified by the writings of Adam Smith?

• A) Governments should encourage exports over imports.
• B) Markets should be kept free from government interference.
• C) Markets are not efficient.
• D) High prices will result from market competition.

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Definitions:

Price Elasticity

A measure of the sensitivity of quantity demanded or supplied to changes in price.

Substitutes

Pairs of goods for which a rise in the price of one of the goods leads to an increase in the demand for the other good.

Related Diversification

Is used when a corporation believes it can achieve synergy among the various businesses that it owns.

Unrelated Diversification

Unrelated diversification is a corporate strategy involving a firm expanding into business activities that are different from its current operations or markets, aiming to reduce risk through diversification.