Which of the following best describes the concept of laissez-faire?
a. Government should not intervene in the economy
b. Government should actively intervene in the economy whenever it judges the action to be beneficial.
c. Government should intervene in the economy only to promote short-term economic stability.
d. Government should intervene in the economy only to maximize long-term growth rates.
e. Government should intervene in the economy only when the economy is not at full employment or there is substantial inflation.
a
You might also like to view...
Which of the following is most likely to cause the demand curve in the capital market to shift leftward?
A) Government borrows to finance a war. B) All firms project higher future revenue streams for all of their projects. C) All firms project lower future revenue streams for all of their projects. D) Government institutes a high tax on savings.
Which of the following antebellum transportation innovations was financed primarily by government funds?
a. the Erie Canal b. the New Orleans steamboat c. the Lancaster Turnpike d. the Ann McKim clipper ship
In a franchising relationship
a. the franchisor is the principal b. the agent is the franchisor c. the franchisor is the agent d. the principal is the franchisee
An identity is an equation that
a. describes an equilibrium. b. pertains to macroeconomics, not to microeconomics. c. must be true because of how the variables in the equation are defined. d. involves final goods, not intermediate goods.