Podcast
Questions and Answers
According to classical economists, why is government intervention not necessary?
According to classical economists, why is government intervention not necessary?
- Aggregate demand creates its own supply
- Government can self-correct temporary deviations
- Government brings distortions into the market
- Market mechanism can efficiently allocate resources (correct)
What is the focus of public finance?
What is the focus of public finance?
- Analysis of government activities (correct)
- Historical perspectives on government intervention
- Economic justification for private sector roles
- Market analysis of supply and demand
What do classical economists view as a potential downside of government involvement in the market?
What do classical economists view as a potential downside of government involvement in the market?
- Price controls leading to distortions (correct)
- Encouraging self-adjustment of market mechanisms
- Efficient allocation of resources
- Speeding up market corrections
Why do Keynesian economists argue for government intervention in the economy?
Why do Keynesian economists argue for government intervention in the economy?
In public finance, what is the role of Aggregate Supply (AS) according to classical economists?
In public finance, what is the role of Aggregate Supply (AS) according to classical economists?
What is the main condition for government intervention according to the Chicago School (Neo-classicals)?
What is the main condition for government intervention according to the Chicago School (Neo-classicals)?
Why do economic arguments support the need for government activities in the economy?
Why do economic arguments support the need for government activities in the economy?
Why might taxes not necessarily improve market outcomes, according to the text?
Why might taxes not necessarily improve market outcomes, according to the text?
What are the three economic objectives of government mentioned in the text?
What are the three economic objectives of government mentioned in the text?
Which function of government involves ensuring conformity with society's concept of 'fair' distribution of income and wealth?
Which function of government involves ensuring conformity with society's concept of 'fair' distribution of income and wealth?
What is the primary role of the Allocation function of government?
What is the primary role of the Allocation function of government?
What is the purpose of the Stabilization or Macroeconomic stability Function of government?
What is the purpose of the Stabilization or Macroeconomic stability Function of government?
Flashcards are hidden until you start studying
