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
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Over the next few years more and more people prefer to ride on scooters. Which of the figures above best illustrates how this change affects the demand curve for scooters?
A) Figure A B) Figure B C) Figure C D) Figure D E) None of the above answers is correct because the change in tastes will affect the supply curve not the demand curve.
Social Security tax is deducted from your paycheck. In the figure above this will be shown as
A) taxes flowing from households to governments. B) taxes flowing from firms to governments. C) taxes flowing from households to firms. D) wages flowing from firms to households. E) wages flowing from firms to governments.