The Classical Theory of Employment Held That

question 175

Multiple Choice

The classical theory of employment held that

• A)total consumption would always equal total saving.
• B)the savings of wealthy households would be borrowed and spent on consumer goods by poor households.
• C)investment might either be less than,or greater than,saving.
• D)the savings of households would all be borrowed and invested by businesses.

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Definitions:

Hawthorne Studies

A series of studies conducted in the early 20th century aimed at understanding how workers' productivity is affected by physical work conditions, work design, and social factors.

Social System

An organized set of relationships among individuals and groups in a society, influencing their behavior and culture.

1960s

The 1960s denotes a decade in the 20th century known for significant cultural, political, and technological changes worldwide.

Standard Time

An adjustment to the total normal time; the adjustment provides allowances for personal needs, unavoidable work delays, and fatigue.