Concepts and Categories Are Important Because They Allow Us To

question 73

Multiple Choice

Concepts and categories are important because they allow us to:

• A)classify objects or ideas as belonging to one single group and no others.
• B)avoid using prototypes in most situations.
• C)develop mental sets which help us solve new problems.
• D)organize and manage tremendous amounts of information.

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Definitions:

Keynesians

Economists who follow the theories of John Maynard Keynes, emphasizing the role of government intervention and fiscal policy in managing economic cycles.

Monetarists

Economists who suggest that fluctuations in the money supply are key in affecting national output in the short term and in determining the price level over an extended term.

Crowding-Out Effect

The phenomenon where increased government spending leads to a reduction in private sector spending and investment due to higher interest rates or other factors.

Government Spending

The total amount of public expenditure by a government, including spending on defense, education, public infrastructure, and welfare programs.