B. Pre-reading exercises

C.3. Decide whether these statements are True (T) or False (F).

1. Keynesians argue that the state can in no way maintain full employment.

2. All the economists reject a command economy as the most inefficient one.

3. Only market failure can impose the greatest costs on an economy.

4. Government management of enterprises is seen to be the only inefficient way.

5. High tax rates encourage people and companies to undertake additional economic activities.

6. A market economy can function well without any legal system and state control.

7. According to Friedman, the best the government can do to help the economy is to take business in its hands.

8. Samuelson turns down the government-sponsored programs for workers, saying that they should think about themselves.

 D. Vocabulary