Unlike the Real World, the Classical Model with Fixed Output

question 106

Multiple Choice

Unlike the real world, the classical model with fixed output assumes that:

• A) all factors of production are fully utilized.
• B) all capital is fully utilized but some labor is unemployed.
• C) all labor is fully employed but some capital lies idle.
• D) some capital lies idle and some labor is unemployed.

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Definitions:

Economic Transformation

A significant change in the structure and composition of an economy, often involving development from an agrarian to an industrial or service-based economy.

Human Immunodeficiency Virus

A virus that attacks the body's immune system and can lead to acquired immunodeficiency syndrome (AIDS) if not treated.

AIDS

Acquired Immune Deficiency Syndrome, a life-threatening condition caused by the human immunodeficiency virus (HIV), leading to a severely weakened immune system.

Necrophilia

A paraphilic disorder characterized by a sexual attraction to corpses.