Which of the Following Could Reduce Economic Efficiency

question 64

Multiple Choice

Which of the following could reduce economic efficiency?

• A)laws that encourage lawsuits
• B)policies that redistribute income
• C)policies that impose significant restrictions on international trade
• D)All of the above are correct

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Definitions:

Overconfidence Bias

The tendency to hold a subjective belief unreasonably confidently, making someone believe their ability, or the accuracy of their information, is higher than it actually is.

Confirmation Bias

The bias towards finding, interpreting, selecting, and recollecting evidence in ways that validate one's prior beliefs or notions.

Hindsight Bias

The tendency to believe, after learning an outcome, that one would have foreseen it, known also as the "I-knew-it-all-along" effect.

Eyewitness

A person who directly observes an event, like a crime, and can provide testimony about what happened.