Which of the Following Is NOT an Assumption of the Classical

question 345

Multiple Choice

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

• A) Buyers and sellers react to changes in relative prices.
• B) Households want to maximize economic well being.
• C) No single buyer or seller of a commodity can affect its price.
• D) Wages and prices will move freely in the upward direction but not the downward direction.

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Definitions:

Sensory Deprivation

The intentional reduction or removal of stimuli from one or more of the senses, which can lead to increased sensitivity in other areas or various psychological effects.

Paraplegia

A condition characterized by the partial or complete paralysis of the lower limbs and trunk, often resulting from spinal cord injury.

Furosemide

A medication used to treat fluid build-up due to heart failure, liver scarring, or kidney disease by acting as a diuretic to increase urine output.