According to the New Classical Macroeconomic School

question 113

Multiple Choice

According to the New Classical macroeconomic school,

• A)active policy intervention is ineffective.
• B)active policy intervention is undesirable and perverse.
• C)active policy intervention's benefits exceed its costs.
• D)active policy intervention's benefits are less than its costs.

---

Definitions:

Cotton Farming

The agricultural practice of cultivating the cotton plant for its fibers, which are harvested and processed into textile products.

Substantial Entry Barriers

Significant obstacles that prevent or hinder new competitors from easily entering an industry or market.

Dominant Firms

Companies that possess a major share of the market and typically have considerable power to influence market conditions and prices.

Low Entry Barriers

Characteristics of a market or industry that make it easy for new companies to start operations and compete.