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Celia, who is a college student, has always thought of herself as an environmental activist.Recently, she "inherited" a gas-guzzling car from her parents, which she has been driving around campus.To reduce the cognitive dissonance that she feels from these clashing images of herself, the environmental activist and the gas-guzzling car owner, she might say that "cars are not really a major environmental problem," which illustrates the strategy of
Laissez-Faire Capitalism
An economic system where private parties are free to engage in economic activities with minimal government intervention.
Classical System
The classical system in economics refers to a school of thought that emphasizes free markets, competition, and the self-regulating nature of economies.
Self-Regulating Markets
A concept where markets operate and correct themselves through the forces of supply and demand without external intervention.
Flexible Wages
A wage system where pay rates can easily adjust in response to changing economic conditions, such as supply and demand for labor.
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