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Economics - Key Theorists & Economic Systems Flashcards | StudBud

Explore/Economics - Key Theorists & Economic Systems

Economics - Key Theorists & Economic Systems

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#economics

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Questions 11

Answers

1
The governments main economic objective is to maximise...
Utility
Profits
Welfare
2
What did John Maynard Keynes advocate?
No government intervention
Gov't Intervention - Lower taxes / Increased gov't spending
Gov't Intervention - Higher taxes / Austerity
3
Who was Hayek closer to in economic philosophy?
Adam Smith
John Maynard Keynes
4
Broadly speaking he was in favour of.....
Command Economy
Mixed Economy (Free markets with some intervention)
Free Markets (Laissez Faire)
5
Which IS NOT an advantage of a Command Economy?
All profits remain within the economy
Distribution of wealth 'should' be more equal
Individuals incentivised to work efficiently & productively.
Scarce resources allocated to the production of necessities
6
Solving the basic economic problem means we must decide what, how and ________ we are to produce
...for whom
...when
...where
7
The basic/fundamental economic problem is....
Limited resources and unlimited wants
Unlimited resources and unlimited wants so choices have to be made
Unlimited resources and limited wants
Limited resources and unlimited wants so choices have to be made
8
Which is NOT an advantage of a Free Market Economy?
Inequality low within society
Optimum allocation of resources
Usually encourages innovation & high quality
Usually improved consumer choice
9
The UK is a....
Mixed Economy
Planned Economy
Free Market Economy
10
Consumers main economic objective is to maximise...
Welfare
Utility
Profits
11
Firms main economic objective is to maximise...
Welfare
Utility
Profits