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:

Atkinson And Shiffrin

Psychologists who proposed the multi-store model of memory, which includes sensory memory, short-term memory, and long-term memory.

Model Of Memory

theoretical frameworks designed to understand how memory processes function, including the encoding, storage, and retrieval of information.

LTM

Long-Term Memory, which refers to the phase of memory capable of storing information for extended periods, potentially for a lifetime.

STM

Short-Term Memory, a part of the memory system where information is stored for a short duration, typically seconds to minutes.