Under Laissez-Faire, the Allocation of Scarce Resources Among the Different

question 110

Multiple Choice

Under laissez-faire, the allocation of scarce resources among the different industries

• A)is possible only with government tax and subsidy policies.
• B)is accomplished by the price system.
• C)requires a considerable amount of central planning.
• D)is the result of consumer planning.

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Definitions:

Civil War-Era

A period surrounding the American Civil War (1861–1865), characterized by significant political, social, and military upheavals in the United States.

Paper Money

Currency in the form of banknotes, which has no intrinsic value but is used as a medium of exchange, authorized and supported by a government.

King Cotton Diplomacy

An attempt during the Civil War by the South to encourage British intervention by banning cotton exports.

Great Britain

A sovereign nation located off the northwestern coast of mainland Europe, comprising England, Scotland, and Wales.