Economics Quiz - Q3Wk4

Classical Economics emphasizes (a)  

• Government intervention in markets
• The importance of aggregate demand
• Free markets and minimal government
• The significance of supply-side pol

(a)   is the economist most closely associated with Keynesian Economics.

• Adam Smith
• Milton Friedman
• John Maynard Keynes
• Arthur Laffer 

Monetarism consists of (a)   ​ ​ ​ (b)   ​ ​ (c)   ​

• adjust the money supply
• promote economic growth
• introduce automatic stabilizers
• controlling inflation

Keynesian economics has also influenced the design​ (a)   ​ ​ (b)   ​ ​ (c)  

• automatic stabilizers
• unemployment benefits
• progressive taxation
• unstable level of aggregate demand

The quantity demanded of a good (a)   when its price decreases.

• increases
• decreases
• remains the same
• fluctuates

Match the following factors with their effects on the supply of a good.

• Leads to a decrease in supply

• A decrease in production costs

• Leads to a decrease in supply due to higher expenses

• An increase in production costs

• Leads to an increase in supply due to more market participants

• An improvement in technology

• Leads to an increase in supply due to better efficiency

• An increase in the number of sellers

(a)   emphasizes the importance of free markets, limited government intervention, and the self-adjusting nature of the economy.

• Classical Economics
• Monetarism
• Keynesian
• Command

When there is a shortage of a particular product, the price tends to

• decrease

• increase

• remain the same

• change with the demand

Keynesian theory supports an active role for government, particularly by

• using price controls

• adding subsidies

• adjusting the money supply

• using fisical policy

The total demand for goods and services in an economy is (a)  

• fisical policy
• aggregate demand
• subsidy
• multiplier effect