What Is an Economic Theory, Widely Accepted Prior to the 1930s

question 48

Multiple Choice

What is an economic theory, widely accepted prior to the 1930s, that advocates the economy is a self-adjusting mechanism that works best without government interference of any kind?

• A) Trickle-down theory
• B) Laissez-faire theory
• C) Keynesian economics
• D) Roosevelt theory
• E) Capitalism

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Definitions:

Credits

Accounting entries that represent an increase in liabilities or revenues, or a decrease in assets or expenses.

Adjusting Entries

Adjusting entries are journal entries made in an accounting period's end to allocate income and expenditures to the period in which they actually occurred.

Chart of Accounts

A structured list detailing a company's financial accounts, categorized to facilitate the organization and reporting of financial transactions.

Accounting Period

A specific time frame in which financial activities are recorded and reported, commonly a year or a quarter.