Question

Match each economist to the scenario that exemplifies his economic philosophy?

Answer 1

Answer:

1. A small Caribbean island's economy depends on tourism. However, in recent times, it has seen much less economic activity. Its government decides to let the market correct the situation.

Hayek

2. Flour prices have risen in a country where bread is a staple part of the diet. As a result, bread prices have risen tremendously, in an effort to make bread affordable for its citizens, the government has limited how much bakes can charge for bread.

Keynes

Explanation: