Which of the Following Was Implied by the Economic Theories

question 65

Multiple Choice

Which of the following was implied by the economic theories promoted by John Maynard Keynes?

• A) The role of business and economic production was to serve the interests of the state.
• B) Human nature was best served by an economy made up of many small producers in competition with one another.
• C) The ideal human society was one in which everyone contributed what they could and took what they needed.
• D) At times states needed to compensate for failures in the market by stimulating the economy with job creation and increasing the supply of currency.

---

Definitions:

Accounting Profits

The difference between total revenues and explicit costs, representing the net income reported on a company's financial statements.

Economic Profits

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs.

Accounting Profits

The net income for a company after all expenses have been deducted from revenues, according to generally accepted accounting principles.