The basic principles of economics imply that policymakers should
A)rely on markets to guide economic activity, except when markets produce inefficient or inequitable outcomes.
B)enact policies that discourage people from specializing in particular economic activities.
C)enact policies that lead to high rates of growth of the quantity of money.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The basic principles of economics suggest that markets are generally efficient in guiding economic activity, but there may be instances where markets fail to produce efficient or equitable outcomes. In those cases, policymakers may need to intervene. However, this does not mean that policymakers should discourage specialization or aim for high rates of growth of the quantity of money.

The Basic Principles of Economics Imply That Policymakers Should