WorksheetsEconomic Schools of Thought
Total questions: 15
Worksheet time: 12mins
Who was the founder of modern economics?
Thomas Malthus
Adam Smith
David Ricardo
Karl Marx
Ideas rose to power in the 1930s. Believed that government should do something to spark economic activity.
Friedrich Hayek
John Maynard Keynes
Milton Friedman
Leader of the Monetarist school of thought. The idea that a steady money supply was key to economic growth.
John Maynard Keynes
Milton Friedman
Friedrich Hayek
Which school of economic thought was adopted by FDR in the 1930s?
monetarist
classical
Keynesian
In this form of capitalism, the government adopts a "hands-off" policy toward the economy.
laissez-faire capitalism
mixed economy
anarcho-capitalism
feudalism
Which theory believes the economy should be controlled through Money Supply
Classical
Keynesian
Monetarism
Austrian
Keynesian economics emphasize a key role in the economy for
Free market forces
Supply side management
Fiscal Policy (Gov't intervention)
Monetary Policy
Fiscal policy
Policies related to controlling the rates of interest in an economy
Policies related to government expenditure to promote investment
Policies related to taxation to stimulate economic activity
Policies related to changing the levels of taxation and government spending in order to influence aggregate demand and the level of economic activity
Sticky wages
When wages and prices don't come down quickly enough to eliminate the market surplus
When wages don't increase fast enough to reflect increasing demand
Wages that are sticky
Which argument is typically associated with classical economists?
A market economy is self-correcting and thus will not remain in a recession indefinitely
A Market economy has stable prices and thus is usually free from inflation
A market economy requires a strong government to ensure that the market meets the needs of the people
A market economy eventually results in monopolies in both the input and output markets
The purpose of expansionary fiscal policy is to:
prevent stagflation.
increase aggregate demand to increase GDP and employment.
slow down rising prices to control aggregate supply.
decrease aggregate demand to decrease GDP and unemployment.
Father of Macroeconomics
Thomas Malthus
John Maynard Keynes
Alfred Marshall
Francois Quesnay
Supply creates its own demand is known as...
Quantity theory of money
Say's Law
Free market theory
