The Hands-Off View of the Classical School Rests on Which

question 122

Multiple Choice

The hands-off view of the classical school rests on which of the following two simple propositions about markets?

• A) Demand creates its own supply and markets are basically competitive.
• B) Competitive markets are efficient and both prices and nominal wages are flexible.
• C) Market failure occurs and prices are rigid.
• D) Wages are sticky downwards and market failure is inevitable.

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Definitions:

Genital Vasocongestion

The swelling of bodily tissues caused by increased vascular blood flow, often associated with sexual arousal.

Sexual Excitement

A state of heightened arousal and anticipation in anticipation of or during sexual activity.

Clitoris

A sensitive organ located at the top of the vulva, primarily involved in female sexual pleasure.

Psychological Experience

Pertains to the mental processes and emotions associated with an individual's perception of the world.