The Classical Model Uses the Assumption That

question 146

Multiple Choice

The classical model uses the assumption that

• A) all wages and prices are flexible.
• B) monopoly is widespread in the economy.
• C) interest rates are not flexible.
• D) economic markets are fragile and have no tendency to move towards an equilibrium.

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Definitions:

CIF

Cost, Insurance, and Freight, a trade term requiring the seller to arrange for the carriage of goods by sea to a port of destination, and provide the buyer with the documents necessary to obtain the goods from the carrier.

Shipping Term

Refers to agreed terms between a seller and buyer that outline the details about the delivery of goods, including who is responsible for shipping costs and risk of damage.

Negotiable Document

A written instrument, such as a bill of exchange, promissory note, or check, that guarantees payment of a specific amount of money and is transferable among different parties.

Goods-in-bailment

Items that are temporarily delivered to someone (the bailee) for custody or storage, without transfer of ownership.