Classical Economists Who Assume the "Invisible Hand" Works Reasonably Well

question 11

Multiple Choice

Classical economists who assume the "invisible hand" works reasonably well do NOT argue that

• A)the government should have a limited role in the economy.
• B)government policies will be ineffective and counterproductive.
• C)the government should actively intervene in the economy to eliminate business cycles.
• D)wages and prices adjust quickly to bring the economy back to equilibrium.

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Definitions:

Perception

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment.

Solitude

The state of being alone, often by choice, allowing for self-reflection, introspection, or personal development.

Compensation

A psychological strategy wherein an individual covers up, either consciously or unconsciously, weaknesses, frustrations, desires, or feelings of inadequacy or incompetence in one area through gratification or excellence in another area.

Inferiority

A feeling of being less important, capable, or worthwhile compared to others, which can impact an individual's self-esteem and psychological well-being.