15 Questions
According to Say's Law, supply and demand is a self-regulating process due to the interaction of two factors. What are these two factors?
Labor and capital
What does technological change or innovation do to the input mix in production?
Decreases labor input
Who benefits the most from technological change according to the text?
Those who own capital
What does Say's Law assume about the distribution of productive power?
It assumes a democratic distribution of productive power
According to Isaiah Berlin's essay, the fox and the hedgehog are symbols of a divide between thinkers and writers based on:
Their single central vision
Louis Kelso is described as:
A hedgehog
The enigmatic fragment by the ancient Greek poet Archilochus suggests that:
The hedgehog knows one big thing
Louis Kelso understood the corporate form of organization because he
designed corporations
Louis Kelso's favorite law clients were
inventors and entrepreneurs
Louis Kelso's collaboration with the hedgehog produced a large and remarkable body of theory and practice, including
Employee Stock Ownership Plan (ESOP)
Louis Kelso's aim was to
save the capitalist system
What did Say and his followers believe would happen if the government adopted a hands-off policy?
The market economy would automatically correct its imbalances
What did President Hoover remind the American people about depressions?
Depressions are not new experiences
What is an 'anomaly' in the context of the Great Depression?
A phenomenon that the dominant paradigm cannot fully explain
What was Louis Kelso's approach to studying economic arrangements?
As an outsider and amateur
Quiz: Understanding the Flaws of Laissez-Faire Economics Test your knowledge on the flaws of laissez-faire economics and the belief that a hands-off government approach can automatically correct imbalances in the market economy. Explore the unknown factors that can lead to economic depressions and discover why the concept of full employment may not always be achievable.
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