Which of the Following Is NOT an Assumption of the Classical

question 189

Multiple Choice

Which of the following is NOT an assumption of the classical model?

• A) Wages and prices are flexible.
• B) People are motivated by self-interest.
• C) Money illusion exists.
• D) Pure competition exists.

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Definitions:

Weight-of-numbers Bias

A cognitive bias where the sheer amount of information or data points available influences the perception of an argument's strength.

Minority Influence

Social influence processes whereby numerical or power minorities change the attitudes of the majority.

Asch's Study

A social psychology experiment by Solomon Asch that demonstrated the influence of group pressure on conformity.

Minority Influence

The process by which a smaller part of a group changes the attitudes, beliefs, or behaviors of the larger group, often through consistency and the quality of arguments.