The "Yes - Markets Self-Adjust" Camp Agrees with All of the Following

question 156

Multiple Choice

The "Yes - Markets Self-Adjust" camp agrees with all of the following statements except which one?

• A) Government spending is determined by political influence rather than need.
• B) Private individuals should make smart choices about how to spend their money.
• C) Reduced government spending is preferred to tax cuts for slowing the economy.
• D) Tax cuts are less effective than government spending for speeding up the economy because savings can cause transmission breakdowns.
• E) Government should keep its hands off of the economy wherever possible.

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Definitions:

Safety Stock

Additional inventory maintained to mitigate the risk of stockouts due to uncertainties in demand or supply chain disruptions.

Lead Time

The amount of time that passes from the start of a process until its completion, often used in manufacturing and project planning.

Level Schedules

Production planning method that maintains a consistent output rate or workforce level, avoiding fluctuations in response to changing demand.

Shigeo Shingo

A Japanese industrial engineer known for his influential work in the Toyota Production System and the development of lean manufacturing principles.