Questions on economics
Overview
This paper contains model answers to four examination questions that might typically be asked to evaluate your understanding of the theory of economics.
Since Adam Smith's 'Wealth of Nations' economic theory was proposed, there has been a continuing debate among eminent economic scholars about which models and theories government's should adopt as the foundation for national fiscal and economic policy. Fama's 'Efficient Market Hypothesis' argues that as financial markets are self-correcting there is no need for government intervention. In contrast, Keynes 'General Theory' suggests that such intervention is critical to ensure market stability.
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