Question 1

Like Adam Smith's book The Wealth of Nations (1776), John Maynard Keynes's book The General Theory of Employment, Interest and Money (1936) revolutionized economic thought and remains influential today.However, when references are made to Keynes or Keynesian thinking, most people have one thought in mind: Keynes's belief that the government should play a role in the economy and hire the unemployed when jobless figures rise too high.Although Keynes, like Milton Friedman, supported the notion of self-interest playing a role in the marketplace, he believed that during times of high unemployment, the government had to step in and create jobs.When allusions to Keynes come up today, the role of government intervention in the economy is almost always what the writer or speaker has in mind, for example, "Keynesian myths persist today largely because of the mistaken belief that economic slowdowns are a result of flaws in the free-market system, when in fact they are the result of government intervention." Summary

Accepted Answer

A) John Maynard Keynes book The General Theory of Employment, Interest and Money (1936) is still very influential, largely because of its emphasis on the Keynesian thinking.Keynes like Milton Friedman believed that self-interest could regulate market forces even in times of high employment.As one expert expressed it, "Keynesian myths persist today largely because of the mistaken belief that economic slowdowns are a result of flaws in the free-market system, when in fact they are the result of government intervention." 
B) John Maynard Keynes book The General Theory of Employment, Interest and Money (1936)brought about a revolution in economic thinking.Keynes argued--and his idea remains influential to this day--that when unemployment skyrocketed, the government needed to step in and provide assistance by creating jobs. B

Question 2

Read each excerpt.Then write the letter of the better summary, explaining why you chose it in the blanks that follow 1.Invisible hand of the market The first two words of this phrase, "invisible hand," come from the book The Wealth of Nations (1776) written by the Scottish economist Adam Smith.The rest of the phrase was added over time.Smith viewed self-interest as the "invisible hand" that would automatically create a balance between supply and demand, making any other kind of regulation or control unnecessary.Smith only uses the phrase once in his book.As a matter of fact, he was never a total believer in the idea of the market automatically regulating itself through the forces of supply and demand.However, the phrase seems to have taken hold in the imagination of many.It survives to this day and is used whenever anyone wants to argue for or against the notion that those in business can do without outside regulation or interference."Like many in corporate management, she was opposed to government regulation, believing instead in the invisible hand of the market."
Summary

Accepted Answer

A) Adam Smith's book The Wealth of Nations (1776) gave us the first two words of the phrase "the invisible hand of the market." The rest of the phrase was added later, and it suggests that individual self-interest could automatically regulate the market.Although Smith never fully believed in the idea, many other people do and the phrase is still a popular one. 
B) Adam Smith's phrase "the invisible hand of the market" seized the public's interest when it was first used in Smiths book The Wealth of Nations .If anything, the phrase's popularity has only increased, as more and more people seem to be opposed to the idea of government intervention. They prefer to believe that enlightened self-interest will naturally regulate market forces. A

Exam 5: Understanding, Outlining, and Summarizing Longer Readings