Which of the Following Statements Is False

question 169

Multiple Choice

Which of the following statements is false?

• A) The classical economists believed that government should manage the economy.
• B) The classical economists believed in a policy of laissez-faire.
• C) The classical economists believed that the economy was self-regulating.
• D) The classical economists believed equilibrium output would be full-employment output.

---

Definitions:

Labor Theory of Value

An economic theory, most closely associated with Karl Marx, which posits that the value of a commodity is determined by the socially necessary labor time required for its production.

Exchange Value

The worth of a good or service determined by what it can be traded or exchanged for in the market.

Use Value

The utility of a good or service for satisfying a need or providing a benefit to the user, as opposed to its exchange value or price.

Emancipatory Subject

An individual or collective agent engaged in actions and discourses aiming at liberation from oppressive conditions or structures.