Deck 10: Liberalism
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Deck 10: Liberalism
1
Who was the author of Principles of Political Economy,which supported free trade and open competition?
A) John Locke
B) Adam Smith
C) Thomas Jefferson
D) John Stuart Mill
A) John Locke
B) Adam Smith
C) Thomas Jefferson
D) John Stuart Mill
D
2
Which term did Adam Smith's The Wealth of Nations first popularized?
A) the invisible hand
B) laissez-faire
C) classical liberalism
D) spontaneous order
A) the invisible hand
B) laissez-faire
C) classical liberalism
D) spontaneous order
A
3
When did the word liberalism come into use as a political term?
A) the Norman Conquest
B) World War I
C) the French Revolution
D) the Napoleonic Wars in Spain
A) the Norman Conquest
B) World War I
C) the French Revolution
D) the Napoleonic Wars in Spain
D
4
Which principle is the liberal concept of equality of right consistent with?
A) equality of property
B) equality of result
C) rule of law
D) equality of condition
A) equality of property
B) equality of result
C) rule of law
D) equality of condition
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5
Which of the following scenarios would NOT happen in a society that embraced liberalism?
A) All major religions openly operate places of worship.
B) Religious symbols are banned from all public buildings
C) All religious groups are allowed to open private religious schools
D) All religions practices are banned.
A) All major religions openly operate places of worship.
B) Religious symbols are banned from all public buildings
C) All religious groups are allowed to open private religious schools
D) All religions practices are banned.
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6
What is the most fundamental distinguishing factor between classical and reform liberalism?
A) views on the role of the state
B) views on meaning of freedom
C) views on access to politics
D) views on the economy
A) views on the role of the state
B) views on meaning of freedom
C) views on access to politics
D) views on the economy
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7
Which of the following rights would be supported by reform liberals,but not necessarily by classic liberals?
A) The right to believe any religion
B) The right to speak out against the government.
C) The right to shelter
D) The right to defend yourself in conflict.
A) The right to believe any religion
B) The right to speak out against the government.
C) The right to shelter
D) The right to defend yourself in conflict.
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8
Why might the French Revolution be particularly significant to the study of ideology?
A) It allowed for experimentation with ideologies through the construction of a new political order.
B) Before the French Revolution, discussion of alternate political ideologies was banned.
C) It marked the beginning of the age of liberalism.
D) It demonstrated the potential for ideologies to cause major social changes.
A) It allowed for experimentation with ideologies through the construction of a new political order.
B) Before the French Revolution, discussion of alternate political ideologies was banned.
C) It marked the beginning of the age of liberalism.
D) It demonstrated the potential for ideologies to cause major social changes.
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9
Which of the following examples is most clearly related to Locke's ideas?
A) The right to bear arms.
B) The right to political protest.
C) The right to education
D) The right to healthcare
A) The right to bear arms.
B) The right to political protest.
C) The right to education
D) The right to healthcare
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10
In which book were the ideas of the Glorious Revolution expressed in?
A) Adam Smith's Wealth of Nations.
B) John Locke's Second Treatise of Government.
C) John Stuart Mill's On Representative Government.
D) Marx and Engels' Communist Manifesto.
A) Adam Smith's Wealth of Nations.
B) John Locke's Second Treatise of Government.
C) John Stuart Mill's On Representative Government.
D) Marx and Engels' Communist Manifesto.
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11
What does freedom mean to the classical liberal?
A) the absence of coercion
B) the absence of government
C) the absence of laws
D) the right to travel
A) the absence of coercion
B) the absence of government
C) the absence of laws
D) the right to travel
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12
Which of the following examples conflicts with Mill's main idea in On Liberty?
A) The state builds and operates publicly-funded mental health institutions.
B) A man suffering from severe depression is brought into a mental health institution to be put on suicide watch.
C) The state runs a public service campaign to educate citizens about mental illness.
D) A mentally unstable patient is physically restrained after threatening staff.
A) The state builds and operates publicly-funded mental health institutions.
B) A man suffering from severe depression is brought into a mental health institution to be put on suicide watch.
C) The state runs a public service campaign to educate citizens about mental illness.
D) A mentally unstable patient is physically restrained after threatening staff.
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13
What was the Glorious Revolution of 1688 fought primarily against?
A) the unchecked power of the nobility
B) the unchecked power of the Church of England
C) the unchecked power of the King
D) the unchecked power of Parliament
A) the unchecked power of the nobility
B) the unchecked power of the Church of England
C) the unchecked power of the King
D) the unchecked power of Parliament
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14
Which of the following scenarios would Adam Smith use to support his arguments in The Wealth of Nations?
A) A successful entrepreneur is able to employ fifty people.
B) The government owns and operates the only major national airline, employing hundreds of people.
C) Unemployment insurance allows people without jobs to support themselves.
D) The government gives money to a major auto company, saving it from bankruptcy.
A) A successful entrepreneur is able to employ fifty people.
B) The government owns and operates the only major national airline, employing hundreds of people.
C) Unemployment insurance allows people without jobs to support themselves.
D) The government gives money to a major auto company, saving it from bankruptcy.
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15
Which document incorporates John Locke's ideas?
A) the Leviathan
B) the French Declaration of the Rights of Man and of the Citizen
C) the American Declaration of Independence
D) the British North America Act
A) the Leviathan
B) the French Declaration of the Rights of Man and of the Citizen
C) the American Declaration of Independence
D) the British North America Act
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16
Classical liberals see the role of government as a night watchman.What does this mean?
A) The state should be involved in the economy, not in the military.
B) The state should be involved in the economy and the military, but not in the judicial process.
C) The state should not be concerned with property protection.
D) The state should not be involved in society to any large degree and therefore should be limited.
E) The state should intervene to promote equality of opportunity.
A) The state should be involved in the economy, not in the military.
B) The state should be involved in the economy and the military, but not in the judicial process.
C) The state should not be concerned with property protection.
D) The state should not be involved in society to any large degree and therefore should be limited.
E) The state should intervene to promote equality of opportunity.
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17
What conclusion can logically be drawn about the underlying assumptions of classical liberalism?
A) Individual human agency should determine the structure of society.
B) It is impossible for the state to provide for society.
C) Not everyone will be well-educated enough to make informed political decisions.
D) Individuals have the means to protect themselves from harm
A) Individual human agency should determine the structure of society.
B) It is impossible for the state to provide for society.
C) Not everyone will be well-educated enough to make informed political decisions.
D) Individuals have the means to protect themselves from harm
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18
Which of the following writers called himself a liberal?
A) John Locke
B) David Hume
C) John Stuart Mill
D) Adam Smith
A) John Locke
B) David Hume
C) John Stuart Mill
D) Adam Smith
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19
Almost everyone in the Western world pays lip service to the four principles of liberalism.What does this mean for the study of ideology?
A) Acceptance of the four principles may not be a sufficient means of distinguishing liberalism from other ideologies.
B) Liberalism makes other ideologies obsolete.
C) The study of ideology is spreading with Westernization.
D) Liberalism is only relevant in the West
A) Acceptance of the four principles may not be a sufficient means of distinguishing liberalism from other ideologies.
B) Liberalism makes other ideologies obsolete.
C) The study of ideology is spreading with Westernization.
D) Liberalism is only relevant in the West
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20
Which concept did Friedrich Hayek refer to as "spontaneous order"?
A) the Prisoner's Dilemma
B) decentralized cooperation
C) equality of outcome
D) the invisible hand
A) the Prisoner's Dilemma
B) decentralized cooperation
C) equality of outcome
D) the invisible hand
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21
What is the difference between "the invisible hand" and the practice of laissez-faire economics?
A) There is no difference.
B) The invisible hand is a nationalist concept, whereas laissez-faire economics is a classical liberal concept.
C) The invisible hand is a reform liberal concept, whereas laissez-faire economics is a nationalist concept.
D) The invisible hand is a democratic socialist concept, whereas laissez-faire economics is a classical liberal concept.
A) There is no difference.
B) The invisible hand is a nationalist concept, whereas laissez-faire economics is a classical liberal concept.
C) The invisible hand is a reform liberal concept, whereas laissez-faire economics is a nationalist concept.
D) The invisible hand is a democratic socialist concept, whereas laissez-faire economics is a classical liberal concept.
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22
Which of the following would a classical liberal be certain to favour?
A) universal suffrage
B) progressive taxation
C) rule of law
D) equality of opportunity
A) universal suffrage
B) progressive taxation
C) rule of law
D) equality of opportunity
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23
The government offers students in need of financial assistance low-interest loans to finance their education.What type of policy is this an example of?
A) a policy based on the ideas of a laissez-faire economy
B) a policy that illustrates the idea of equality of opportunity
C) a policy based on a belief in spontaneous order
D) a policy that illustrates the idea of equality of condition
A) a policy based on the ideas of a laissez-faire economy
B) a policy that illustrates the idea of equality of opportunity
C) a policy based on a belief in spontaneous order
D) a policy that illustrates the idea of equality of condition
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24
Which of the following situations would trouble Adam Smith the most?
A) When there is threat to major oil supplies, gas doubles in price, making it unaffordable to the average consumer.
B) Competing oil companies set up gas stations across the road from each other, making consumers choose between the two.
C) Gas prices jump three or four times a day, depending on the price of oil in international markets.
D) Legislation allows stations to change the price of gas only per week to protect consumers.
A) When there is threat to major oil supplies, gas doubles in price, making it unaffordable to the average consumer.
B) Competing oil companies set up gas stations across the road from each other, making consumers choose between the two.
C) Gas prices jump three or four times a day, depending on the price of oil in international markets.
D) Legislation allows stations to change the price of gas only per week to protect consumers.
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25
Which of the following would a reform liberal probably LEAST favour?
A) extending voting rights to prisoners
B) giving tax breaks to single mothers
C) regulating prices for staple foods like milk and bread
D) creating private competition in the healthcare field to ensure the best quality care
A) extending voting rights to prisoners
B) giving tax breaks to single mothers
C) regulating prices for staple foods like milk and bread
D) creating private competition in the healthcare field to ensure the best quality care
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26
Which group advocates government measures to promote equality of right?
A) conservatives
B) socialists
C) classical liberals
D) reform liberals
A) conservatives
B) socialists
C) classical liberals
D) reform liberals
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27
John Stuart Mill has been called a pioneer of reform liberalism.What has led to this assessment?
A) his conservative views
B) his socialist ideas
C) his democratic ideas
D) his advocacy of free trade
A) his conservative views
B) his socialist ideas
C) his democratic ideas
D) his advocacy of free trade
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28
Which of the following is NOT one of the measures advocated by reform liberals in order to redress social inequalities?
A) progressive taxation
B) public schools
C) proportional taxation
D) old age pensions
A) progressive taxation
B) public schools
C) proportional taxation
D) old age pensions
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29
What is the most fundamental assumption of the laissez-faire economy?
A) some sort of class distinction in society is inevitable
B) individuals are capable of making decisions that will not destroy society
C) the state has no experience with the economy
D) the fluctuations in the economy are planned
A) some sort of class distinction in society is inevitable
B) individuals are capable of making decisions that will not destroy society
C) the state has no experience with the economy
D) the fluctuations in the economy are planned
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30
Why did the reform liberal consensus break down in the 1980s?
A) The working class had not been integrated into Western society.
B) Keynesianism was discredited for its deficit spending and inflationary tendencies.
C) Western leaders ignored their advisors.
D) Industries became dominated by a few firms.
A) The working class had not been integrated into Western society.
B) Keynesianism was discredited for its deficit spending and inflationary tendencies.
C) Western leaders ignored their advisors.
D) Industries became dominated by a few firms.
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31
Which of the following ideas is NOT consistent with classical liberalism?
A) Striving to close the income gap between rich and poor classes.
B) Believing that society is better off when left to its own devices.
C) Insisting that religion is a private matter.
D) Limiting voting rights to those who are able to make responsible choices.
A) Striving to close the income gap between rich and poor classes.
B) Believing that society is better off when left to its own devices.
C) Insisting that religion is a private matter.
D) Limiting voting rights to those who are able to make responsible choices.
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32
Which of the following situations follows the same logic as progressive taxation?
A) A university offers bursaries to low-income students.
B) A university offers scholarships to students with high grades.
C) People who pay more taxes have quicker access to healthcare
D) All members of a union pay the same amount of union dues every year in exchange for certain labour protections.
A) A university offers bursaries to low-income students.
B) A university offers scholarships to students with high grades.
C) People who pay more taxes have quicker access to healthcare
D) All members of a union pay the same amount of union dues every year in exchange for certain labour protections.
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33
Which of the following beliefs do classical and reform liberals share?
A) personal freedom should be at the heart of any society
B) the poor should not be taxed
C) the state should be involved in helping citizens achieve their goals
D) the government has a responsibility to ensure equality of condition
A) personal freedom should be at the heart of any society
B) the poor should not be taxed
C) the state should be involved in helping citizens achieve their goals
D) the government has a responsibility to ensure equality of condition
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34
Which of the following most closely resembles democratic socialism?
A) nationalism
B) classical liberalism
C) reform liberalism
D) communism
A) nationalism
B) classical liberalism
C) reform liberalism
D) communism
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35
What underlying issue makes Keynesian economics difficult to implement?
A) global recessions
B) lack of voter support
C) unpredictable business cycles
D) unrealistic expectations
A) global recessions
B) lack of voter support
C) unpredictable business cycles
D) unrealistic expectations
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36
Which of the following has NOT been a factor encouraging the rise of reform liberalism?
A) the growth of large corporations
B) the growth of a large working class
C) the reduction of competition in key markets
D) the growth of competition in key markets
A) the growth of large corporations
B) the growth of a large working class
C) the reduction of competition in key markets
D) the growth of competition in key markets
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37
Which of the following have classical liberals historically supported?
A) slavery
B) noble privilege
C) religious discrimination
D) limited voting rights
A) slavery
B) noble privilege
C) religious discrimination
D) limited voting rights
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38
Which of the following policies would reform liberals NOT agree with?
A) Tax breaks for businesses that employ people with disabilities
B) Tax breaks for businesses that employ over 500 people
C) Tax breaks for single mothers
D) Tax breaks for parents of children with disabilities
A) Tax breaks for businesses that employ people with disabilities
B) Tax breaks for businesses that employ over 500 people
C) Tax breaks for single mothers
D) Tax breaks for parents of children with disabilities
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39
What is one of the primary differences between classical liberalism and reform liberalism?
A) Classical liberals advocate laissez-faire economies; reform liberals do not.
B) Reform liberals advocate laissez-faire economies; classical liberals do not.
C) Classical liberals have stronger ties to socialism than do reform liberals.
D) Reform liberals historically place more emphasis on property than classical liberals.
A) Classical liberals advocate laissez-faire economies; reform liberals do not.
B) Reform liberals advocate laissez-faire economies; classical liberals do not.
C) Classical liberals have stronger ties to socialism than do reform liberals.
D) Reform liberals historically place more emphasis on property than classical liberals.
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40
What does reform liberalism emphasize?
A) freedom at the expense of justice
B) liberalism over democracy
C) democracy over economic freedom
D) socialism over democracy
A) freedom at the expense of justice
B) liberalism over democracy
C) democracy over economic freedom
D) socialism over democracy
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41
In the nineteenth century,many classical liberals favoured a property franchise.What does this mean?
A) Private citizens could open a franchise on their property.
B) People had to own a stipulated amount of property before receiving the right to vote.
C) Any person running for office had to own a significant amount of property to qualify.
D) Merchants who did not own land were not allowed to have the vote.
A) Private citizens could open a franchise on their property.
B) People had to own a stipulated amount of property before receiving the right to vote.
C) Any person running for office had to own a significant amount of property to qualify.
D) Merchants who did not own land were not allowed to have the vote.
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42
Reform liberals are concerned with social justice.What does this necessarily entail?
A) equality for all
B) proportional taxation
C) protection of property
D) progressive taxation
A) equality for all
B) proportional taxation
C) protection of property
D) progressive taxation
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43
Reform liberals are in favour of equality of opportunity.What does this mean?
A) They propose to reduce economic and social differences.
B) They want everyone to have the same income.
C) They want everyone to receive the same benefits.
D) They advocate nationalization of some businesses.
A) They propose to reduce economic and social differences.
B) They want everyone to have the same income.
C) They want everyone to receive the same benefits.
D) They advocate nationalization of some businesses.
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44
What was the Oxford University philosophy professor T.H.Green a famous advocate of?
A) reform liberalism
B) the property franchise
C) proportional taxation
D) democratic socialism
A) reform liberalism
B) the property franchise
C) proportional taxation
D) democratic socialism
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45
How are collective (or public)goods often financed?
A) through the taxation system
B) through sale at market price
C) through voluntary contributions from free riders
D) through private sponsors
A) through the taxation system
B) through sale at market price
C) through voluntary contributions from free riders
D) through private sponsors
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46
Which of the following is advocated by reform liberals?
A) equality of property
B) equality of condition
C) equality of opportunity
D) deregulation
A) equality of property
B) equality of condition
C) equality of opportunity
D) deregulation
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47
Who argued that government should intervene in an economic depression by applying appropriate fiscal and monetary measures?
A) J.S. Mill
B) J.M. Keynes
C) Edmund Burke
D) Adam Smith
A) J.S. Mill
B) J.M. Keynes
C) Edmund Burke
D) Adam Smith
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48
What is tax evasion a good example of?
A) a collective good
B) a form of protest
C) free riding
D) a form of government coercion
A) a collective good
B) a form of protest
C) free riding
D) a form of government coercion
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49
Collective goods are not divisible among individuals.Therefore,which statement best characterizes them?
A) They are easily stolen.
B) They are provided by the private sector.
C) They are easily taken advantage of by free riders.
D) They are expensive to pay for.
A) They are easily stolen.
B) They are provided by the private sector.
C) They are easily taken advantage of by free riders.
D) They are expensive to pay for.
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50
Which of the following initiatives would T.H.Green be most opposed to?
A) The privatization of health care services.
B) An increase in police and military forces.
C) The development of public employment services offered exclusively to the poor.
D) The creation of government education funds for children of single parents.
A) The privatization of health care services.
B) An increase in police and military forces.
C) The development of public employment services offered exclusively to the poor.
D) The creation of government education funds for children of single parents.
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51
Which is the underlying assumption behind the implementation of the welfare state?
A) The state is the only body with enough power to regulate the economy
B) People will be the most free when the state provides all of their basic necessities.
C) Individual freedom will be limited if people cannot provide for themselves.
D) Individuals will not pay for services like healthcare and police protection
A) The state is the only body with enough power to regulate the economy
B) People will be the most free when the state provides all of their basic necessities.
C) Individual freedom will be limited if people cannot provide for themselves.
D) Individuals will not pay for services like healthcare and police protection
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52
Who is generally believed to have launched the welfare state in Canada?
A) William Lyon Mackenzie King
B) Pierre Elliot Trudeau
C) Lester B. Pearson
D) John A. MacDonald
A) William Lyon Mackenzie King
B) Pierre Elliot Trudeau
C) Lester B. Pearson
D) John A. MacDonald
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53
Which statement best describes the opinion of classical liberals towards public goods?
A) They are unnecessary and should not be provided by the state.
B) Their provision should be limited to the most necessary goods.
C) They are essential and should be fully provided by the state.
D) They are necessary for the emergence of spontaneous order.
A) They are unnecessary and should not be provided by the state.
B) Their provision should be limited to the most necessary goods.
C) They are essential and should be fully provided by the state.
D) They are necessary for the emergence of spontaneous order.
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54
Using Friedrich Hayek's terminology,which of the following is the opposite of a deliberately imposed economic pattern?
A) spontaneous order
B) interventionist state
C) centrally planned economy
D) invisible hand
A) spontaneous order
B) interventionist state
C) centrally planned economy
D) invisible hand
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55
Which of the following do classical liberals strongly object to?
A) coercive state redistribution
B) coercive state protection of property
C) coercive state privatization
D) coercive state enforcement of the rules of conduct
A) coercive state redistribution
B) coercive state protection of property
C) coercive state privatization
D) coercive state enforcement of the rules of conduct
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56
How would freedom be expressed in an ideal reform liberal society?
A) Everyone would be protected by the government so that they could freely attain basic necessities.
B) Everyone would have similar levels of wealth, freeing them from the dangers of a competitive market.
C) Everyone would be free under the law to act in self-interest so long as it did not infringe on the rights and freedoms of others.
D) Everyone would have a guarantee of basic necessities so that they could freely pursue their personal interests.
A) Everyone would be protected by the government so that they could freely attain basic necessities.
B) Everyone would have similar levels of wealth, freeing them from the dangers of a competitive market.
C) Everyone would be free under the law to act in self-interest so long as it did not infringe on the rights and freedoms of others.
D) Everyone would have a guarantee of basic necessities so that they could freely pursue their personal interests.
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57
Which of the following was supported by reform liberals in the nineteenth century?
A) extension of the property franchise
B) extension of deregulation
C) extension of the franchise
D) extension of negative freedom
A) extension of the property franchise
B) extension of deregulation
C) extension of the franchise
D) extension of negative freedom
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58
Which of the following Canadian prime ministers had the LEAST impact on the creation of the welfare state?
A) Pierre Trudeau
B) William Lyon Mackenzie King
C) Lester B. Pearson
D) Jean Chretien
A) Pierre Trudeau
B) William Lyon Mackenzie King
C) Lester B. Pearson
D) Jean Chretien
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59
Which statement about public goods is false?
A) They often require government action in order to be provided.
B) They are difficult to package in a market transaction.
C) Food, clothing and shelter are good examples.
D) Free riders try to obtain them without paying for their share.
A) They often require government action in order to be provided.
B) They are difficult to package in a market transaction.
C) Food, clothing and shelter are good examples.
D) Free riders try to obtain them without paying for their share.
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60
Which of the following is an example of a free rider?
A) Someone who uses public transportation without paying.
B) Someone who lies about their income to pay less taxes.
C) Someone who sneaks into a movie theatre without paying.
D) Someone who refuses to drive on toll highways, using only the free roads.
A) Someone who uses public transportation without paying.
B) Someone who lies about their income to pay less taxes.
C) Someone who sneaks into a movie theatre without paying.
D) Someone who refuses to drive on toll highways, using only the free roads.
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61
Which statement best describes limited government?
A) The state serves the interests of particular groups.
B) The state is an instrument serving a particular function in society.
C) The state is owned by the people through election.
D) The state is controlled by the bureaucracy.
A) The state serves the interests of particular groups.
B) The state is an instrument serving a particular function in society.
C) The state is owned by the people through election.
D) The state is controlled by the bureaucracy.
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62
What does the concept of laissez-faire mean for liberal political economists?
A) The state shall not interfere with the running of the economy.
B) The monarchy shall be limited in its land holdings.
C) The Parliament owns all of the rights to land.
D) Individual self-worth is greater than the commonwealth.
A) The state shall not interfere with the running of the economy.
B) The monarchy shall be limited in its land holdings.
C) The Parliament owns all of the rights to land.
D) Individual self-worth is greater than the commonwealth.
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63
Which event triggered the temporary revival of Keynesian economics?
A) WWII
B) Great Recession (2008)
C) Great Depression
D) The election of Ronald Regan as US President
A) WWII
B) Great Recession (2008)
C) Great Depression
D) The election of Ronald Regan as US President
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64
Classical liberals believe that redistribution is the fairest way to achieve equality of right.
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65
Which statement best describes a progressive tax?
A) The amount of tax rises equally as the income rises.
B) The rate of tax rises as the income rises.
C) The more goods and services you purchase, the more you pay.
D) The rate of tax is the same for all payers.
A) The amount of tax rises equally as the income rises.
B) The rate of tax rises as the income rises.
C) The more goods and services you purchase, the more you pay.
D) The rate of tax is the same for all payers.
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66
Laissez-faire liberalism advocates the intervention of the state in the economy.
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67
Following Keynesian economics,which scenario is most likely to occur during a recession?
A) Fiscal conservatives will complain about a growing government deficit.
B) The government will cut spending to social programs because of decreased tax revenues.
C) A coordinated international effort to stem fiscal crisis will emerge.
D) Financial institutions will complain that the government offered no protection.
A) Fiscal conservatives will complain about a growing government deficit.
B) The government will cut spending to social programs because of decreased tax revenues.
C) A coordinated international effort to stem fiscal crisis will emerge.
D) Financial institutions will complain that the government offered no protection.
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68
The role of the state in a classical liberal perspective is to remove itself from economic affairs.
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69
The origin of the welfare state lies in the ideas inherent in reform liberalism.
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70
J.M.Keynes argued that hiking interest rates and reducing deficits make no sense in an economic recession.
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71
Adam Smith argued that government has a duty to build and maintain public works and public institutions that can never be for the interest or profit of individuals.
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72
Reform liberalism has been called modern democratic liberalism,and classical liberalism has been called constitutional liberalism.
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73
Classical liberals in this century are often called,and call themselves,conservatives.
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74
Liberalism is known for its commitment to equality of result.
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75
Freedom as understood by liberals refers to the ____________ and the __________ to achieve our goals in life.
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76
Equality of opportunity is the most important principle of classical liberalism.
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77
J.M.Keynes argued that government should intervene in an economic recession by applying appropriate fiscal and monetary measures,such as ensuring full employment and stimulating business activity by running deficits.
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78
William Lyon Mackenzie King is generally believed to have launched the welfare state in Canada
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79
Fiscal policy refers to government spending,while monetary policy refers to control over interest rates and money supply.
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80
Collective goods or public goods are goods and services not divisible among individuals.
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