A Passive Approach to Economic Policy Calls for the Government

question 174

Multiple Choice

A passive approach to economic policy calls for the government to do nothing to offset unemployment because of

• A)a lack of any real concern for those who have no jobs
• B)a conviction that unemployment is relatively harmless
• C)a belief that active economic policy is likely to be either ineffective or harmful
• D)a desire to await further economic data before intervening
• E)belief in the law of diminishing returns

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Definitions:

Human Behavior

The entirety of actions, reactions, and interactions undertaken by humans, influenced by culture, attitudes, emotions, values, ethics, and the external environment.

Social Psychology

The scientific study of how people affect and are affected by others.

Kurt Lewin

A pioneering psychologist known for his work in group dynamics, social psychology, and organizational development, and for founding action research.

Ringelmann's Research

Investigates the phenomenon where individual productivity declines as group size increases, known as social loafing.