Economists Differ in Their Views of the Role of the Government

question 1

Multiple Choice

Economists differ in their views of the role of the government in promoting economic growth.A controversial idea is that government should

• A)lend support to the invisible hand by maintaining property rights and political stability.
• B)lower barriers and impediments to free trade.
• C)encourage capital formation.
• D)target and subsidize specific industries important for technological progress.

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Definitions:

Cognition

Gaining insights and knowledge through the process of thinking, feeling through experiences, and sensory experiences.

Engineering

The application of scientific, mathematical, and practical knowledge to invent, design, build, maintain, and improve structures, machines, devices, systems, and processes.

Information Searches

The process of seeking out information and data to make informed decisions or solve problems.

Buying Decision Behaviour

The process consumers go through in recognizing a need, searching for information, evaluating alternatives, making a purchase, and post-purchase evaluation.