Question

6. Mainstream economics today makes the following basic assumption: (circle one letter) a. people are naturally competitive and motivated by self-interest b. people make their own independent, rational decisions c. capitalism is the best possible economic system for people to satisfy their wants d. all of the above 7. The two basic approaches in Mainstream economics are: a. Republican and Democratic b. conservative and liberal c, conservative and radical d. capitalist and socialist

Answer 1

6) Option B is right.

Explanation: Economic thought can be divided into three phases: premodern, early modern and modern (Mainstream Economics).

The basic assumption of mainstream economics is " Rational Choice Theory", which states that individuals make decisions that will maximize their own utility and also that individuals always make prudent and logical decisions that provides the highest amount of personal utility.

7) The correct option is D

Capitalist; A capitalist society was characterized by the split between two classes of individuals - the capitalist class, which owns the means for producing and distributing goods (the owners) and the working class.

Socialist: Socialists believed in ownership of resources and central planning offer a more equitable distribution of goods and services.