Keynes Was Skeptical of the Notion That the Market Would

question 70

True/False

 Keynes was skeptical of the notion that the market would automatically operate at a full-employment,low-inflation level. 

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Definitions:

Market Failure

Occurs when the allocation of goods and services by a free market is not efficient.

Free-rider Problem

A situation in public economics where individuals consume a good without paying for it, leading to underproduction or depletion of the good, as seen often in public goods and common resources.

Public Good

A good that is non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from its use and one person's use does not diminish its availability to others.

Nonexclusion

A characteristic of certain goods where it is difficult or impossible to exclude individuals from using the good, often leading to issues with free riders.