On What Grounds Did the Austrian-Born Economist Friedrich A

question 25

Multiple Choice

On what grounds did the Austrian-born economist Friedrich A.Hayek reject the New Deal state?

• A) In all its details, he thought it indistinguishable from National Socialism.
• B) The American consumer economy, he thought, lacked the complexity that required economic planning.
• C) He was convinced that even the best intentioned government planning efforts would threaten individual liberties.
• D) He reasoned that economic planning during the war had almost cost the United States its victory.
• E) He worried that the New Deal would eventually assist African-Americans in achieving equality.

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Definitions:

Surplus

A situation where the quantity of a good or service supplied exceeds the quantity demanded, often resulting in excess stock and potential price reductions.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product or service, intending to protect consumers from excessive prices.

Price Floor

A price floor is a government- or authority-imposed minimum price set above the equilibrium price, preventing the market price from falling below it.

Shortage

A situation where demand for a product or service exceeds its supply in a market.