30. Woods argues that consumption is: a. the act of using things up. b. the domi

Question

30. Woods argues that consumption is: a. the act of using things up. b. the dominant driving force in our economy. c. the key to economic growth and progress. d. the foundation of what makes us a wealthy nation. e. All of the above. 31. In the example that Woods cites from Adam Smith, it is the consumption of food and clothing by the _____ that benefits us, not the consumption by the _____. a. merchant; soldier b. blacksmith; merchant c. ploughman; soldier d. soldier; bureaucrat e. merchant; ploughman 32. Among Woods’ suggestions for what we can do to improve our situation is/are: a. allow big firms (like Enron) to fail. b. strengthen regulations on Fannie Mae and Freddie Mac. c. cut government spending. d. Both A and B are correct. e. Both A and C are correct. 33. Among Woods’ suggestions for what we can do to improve our situation is/are: a. improve oversight of government management of money. b. increase reliance on the Fed to steer the economy along a sustainable path. c. lower the requirements for how big a firm has to be to fall under the “Too Big To Fail” policy. d. All of the above. e. None of the above.

Explanation / Answer

First question is answered below.

30.

Correct option: e. All of the above

Reason: As per Woods, consumption is the engine of growth of an economy. It is the part of income used up (and not saved) and increases output and wealth of a nation.

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