Classic Laissez-Faire Theory Argues All of the Following Except That

question 79

Multiple Choice

Classic laissez-faire theory argues all of the following except that

• A) government monopolies depress economic growth.
• B) people's selfishness can promote the public good.
• C) a truly efficient government allows private enterprise to provide all government services.
• D) economic competition unleashes growth and innovation.
• E) government should stay out of the private sector except when providing a select number of public goods.

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Definitions:

Market Dominates

When a single company or entity has a large enough share to control or influence the market terms, prices, and conditions significantly.

Near-Monopoly

A market structure where one firm predominates but does not solely control the market, allowing for minor competition.

Price Leadership

A situation where one company in an industry sets the price for its products, and other companies in the industry follow suit, often due to the dominance of the leading company.

Prisoner's Dilemma

A fundamental problem in game theory demonstrating that two individuals might not cooperate, even if it appears that it is in their best interest to do so.