In Today's Terms, Someone Who Generally Supports Extensive Government Intervention

question 6

Multiple Choice

In today's terms, someone who generally supports extensive government intervention in the economy is known as a

• A)liberal.
• B)populist.
• C)libertarian.
• D)conservative.
• E)supply-sider.

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Definitions:

Potential Entrant

A firm or company that is not currently in a market but has the potential to enter if market conditions are favorable.

Dominant Strategy

Rephrased: In strategic decision-making, a Dominant Strategy is the optimal choice for a participant that yields the best outcome, independent of the strategies chosen by other players.

Nash Equilibrium

A principle in game theory where each participant's tactic is the best given the tactics of others, and none of the players stand to benefit from altering merely their strategy.

Credible Threat

A declaration or action by a party that it will follow through with a particular response if certain conditions are met, believed to be feasible by the other party.