The "No - Markets Fail Often" Camp Agrees with All

question 192

Multiple Choice

The "No - Markets Fail Often" camp agrees with all of the following statements except which one?

• A) Tax cuts are less effective than government spending for speeding up the economy because savings can cause transmission breakdowns.
• B) Market failures create a need for hands-on government.
• C) Democratically elected politicians are the right people to make choices about how to spend taxpayers' money.
• D) Government spending is determined by political influence rather than need.
• E) Tax increases are preferred to reduced government spending for slowing down the economy.

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Definitions:

Tertiary Circular Reaction

A stage in Piaget's theory of cognitive development during which toddlers experiment with new behaviors to see the outcomes, typically observed around 12 to 18 months of age.

Invention

The creation of a new device, method, or process, developed from study and experimentation.

Scheme Assimilation

The cognitive process by which new information is absorbed into existing mental frameworks or schemas.

Sensorimotor Development

The stage of cognitive development, according to Piaget, from birth to about two years, where infants learn through interacting with their environment using their senses and motor actions.