Which of the following is not one of the key ideas of classical economic theory? Laissez-fair: governments take a hands-off approach to markets Self-regulating: if the left alone, economies would take care of themselves Equality: all individuals should have equal access to the marketplace Individualism: individual freedom to pursue profit
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Step 1: The key ideas of classical economic theory include laissez-faire, self-regulating economies, individualism, and free markets. Show more…
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Classical theory believes that the government should not intervene and should set the market free so that it can regulate itself alone. Everyone has the right to pursue their own interests, whether they are based on services or demands.
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The basic principles of economics suggest that a. markets are seldom, if ever, a good way to organize economic activity. b. government should become involved in markets when trade between countries is involved. c. government should become involved in markets when those markets fail to produce efficient or fair outcomes. d. all of the above are correct.
Comparing neoclassical theory to Keynesian theory, it is safe to say that: a. Neoclassical theory places more emphasis on the government to solve problems, while the Keynesian theory places more emphasis on the market to solve problems. b. Neoclassical theory places more emphasis on the market system to solve problems, while the Keynesian theory places more emphasis on the government to solve problems. c. Neoclassical theory and Keynesian theory both agree that the government must be involved in the economy to achieve full employment. d. None of the above.
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