Precepts of the classical school of economics include all of the following EXCEPT:
A) by adjusting to varying levels of demand and supply, markets are usually efficient in organizing economic activity.
B) general non-intervention by government, that is, "laissez faire" (allow to do).
C) regular government intervention to assure stability and growth in the economy.
D) if government intervention is necessary, it should be with the goal of increasing economic activity.
E) money is important as a medium of exchange, but printing excess money will lead to inflation.

Question

Quizplus · Accepted Answer

Precepts of the classical school of economics emphasize the importance of market efficiency and laissez faire policies, as well as the importance of controlling the money supply to prevent inflation. However, they do not advocate for regular government intervention to ensure stability and growth in the economy. In fact, classical economists generally believed that government intervention could often be detrimental to economic activity.

Precepts of the Classical School of Economics Include All of the Following