Which Statement Is the Key Argument of John Maynard Keynes

question 16

Multiple Choice

Which statement is the key argument of John Maynard Keynes?

• A)Government can pull an economy out of a recession by stimulating demand and creating a cycle of increased production and jobs.
• B)Government regulations during economic depressions must be lifted because they destroy the already slim profit margin.
• C)The economy of size shows that monopolies are the most efficient way to distribute goods throughout a national marketplace.
• D)Government can rectify a falling economy by regulating the money supply.

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Definitions:

Average Variable Cost

The total variable cost of producing a good divided by the quantity of the good produced, representing the variable cost per unit.

Average Total Costs

The total costs of production (fixed plus variable) divided by the total quantity of output produced, expressing the cost on a per-unit basis.

Economies of Scale

The savings that organizations achieve through their size of operation, where the expense per produced unit consistently decreases with an upscaling in operation.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm's size or output increases beyond a certain point.