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:

Unrelated Diversification

A business strategy where a company expands into markets or products that are not related to its current operations.

Business Cycles

The fluctuations in economic activity that an economy experiences over a period of time, marked by periods of expansion and contraction.

Economic Fluctuations

Variations in the level of economic activity over a period of time, often characterized by periods of growth (expansions) and contraction (recessions).

Retrenchment Strategy

A business strategy focused on reducing the scale or scope of a corporation's operations to become more financially stable.