Thomas Hobbes's Book Leviathan Outlined His Idea of the Social

question 13

Multiple Choice

Thomas Hobbes's book Leviathan outlined his idea of the social contract. According to his view:

• A) People are basically good and give priority to the well-being of others.
• B) People are guided by self-interest and voluntarily agree to form a society to avoid chaos and war.
• C) Most leaders of society exploit and mistreat the people they govern.
• D) Political leaders should sign written agreements to govern fairly and they should be punished if they violate those agreements.

---

Definitions:

Supply-side Economics

Supply-side Economics is a macroeconomic theory that argues economic growth can be most effectively fostered by lowering taxes and decreasing regulation to increase production.

Milton Friedman

An American economist and Nobel laureate renowned for his research on consumption analysis, monetary history and theory, and the complexity of stabilization policy.

Rational Expectationists

Economists who believe that individuals make decisions based on their rational outlook, available information, and past experiences.

Monetary Policy

The process by which the monetary authority of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.