A Basic Feature of the Classical System of Self-Regulating Markets

question 154

Multiple Choice

A basic feature of the classical system of self-regulating markets was that

• A)overproduction and unemployment would cause prices and wage rates to increase.
• B)flexible wages and prices would eliminate unemployment and overproduction.
• C)overproduction would never occur.
• D)an increase in saving would cause an increase in the interest rate and a decrease in investment spending.
• E)rising unemployment caused wage rates to rise,which reduced the demand for labor.

---

Definitions:

Willpower

The ability to control impulses and make decisions that align with personal goals and societal norms.

Self-Control

The faculty to command one's emotional experiences, thought patterns, and deeds in scenarios involving enticements and impetuous impulses.

Oxytocin

A hormone and neurotransmitter involved in childbirth and breastfeeding, also associated with empathy, trust, sexual activity, and relationship-building.

Stress-Moderating Hormone

A hormone that helps regulate the body’s response to stress, such as cortisol, which plays a role in the body’s "fight or flight" response.