In Which of the Following Economies Would the Government Be

question 103

Multiple Choice

In which of the following economies would the government be most likely to take into state ownership troubled firms whose continued operation is thought to be vital to national interests?

• A) market economies
• B) laissez-faire economies
• C) liberal economies
• D) mixed economies

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Definitions:

1929

Refers to the year marked by the stock market crash in October, which contributed to the onset of the Great Depression.

Stagflation

An economic condition characterized by slow economic growth, high unemployment, and rising prices.

Full Employment

A state in an economy where all eligible workers who want to work at current wage rates can find employment, with no involuntary unemployment.

Recessions

Economic periods of decline characterized by falling GDP and increasing unemployment, often leading to reduced consumer spending and investment.