22
QuizMultiple Choice

Economic Policy: Influential Theories — Quiz

Question 22 • Economics

Friedrich Hayek believed that

Answer
A
the economy is simply explained through behaviors.
B
the economy is too complicated to apply aggregates.
C
individuals could not influence the economy.
D
behaviors could be easily predicted.

Explanation

Hayek argued that economic outcomes arise from many individuals making decisions with limited knowledge, so the economy is too complex to understand fully through broad aggregates alone. He favored studying how individual choices and interactions produce larger patterns. Therefore, the correct choice is “the economy is too complicated to apply aggregates.”

AI-written and checked against the verified answer.

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