In Contrast to the Conclusions Drawn from Microeconomics, Many Economists

question 127

Multiple Choice

In contrast to the conclusions drawn from microeconomics, many economists argue that in macroeconomics, government:

• A) control of rent prices increases overall economic activity.
• B) intervention in markets usually leaves society as a whole worse off.
• C) taxation of goods and services does not cause a deadweight loss of economic welfare.
• D) intervention in markets can prevent or reduce the effects of adverse events on the macroeconomy.

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Definitions:

Sensory Nervous System

The part of the nervous system that processes input from sensory organs, enabling the perception of sight, sound, touch, taste, and smell.

Somatic Nervous System

The division of the peripheral nervous system that controls the body’s skeletal muscles. Also called the skeletal nervous system.

Parasympathetic Nervous

Part of the autonomic nervous system responsible for conserving energy and promoting restful states by slowing the heart rate and increasing intestinal and gland activity.

Sympathetic Nervous

The part of the autonomic nervous system that activates the body's stress response, commonly known as the "fight or flight" system.