Economists Differ in Their Views of the Role of the Government

question 106

Multiple Choice

Economists differ in their views of the role of the government in promoting economic growth. At the very least, the government should

• A)lend support to the invisible hand by maintaining property rights and political stability.
• B)limit foreign investment to industries that don't already exist in the country.
• C)impose trade restrictions to protect the interests of domestic producers and consumers.
• D)subsidize key industries.

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Definitions:

Internal Factor

Psychological or physiological conditions within an individual that influence their behaviors and decisions.

External Factor

Influences that impact an individual or organization but originate outside of their control.

Illusion of Control

The erroneous belief that one can influence or control outcomes that are actually determined by chance.

Discounting Principle

A psychological concept suggesting that when there are multiple perceived causes for behaviour, the importance of any single cause is diminished.