Which of the Following Is NOT an Assumption of the Classical

question 99

Multiple Choice

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

• A) Wages and prices are fixed.
• B) People are motivated by the own self-interest.
• C) Pure competition exists.
• D) Buyers react to changes in relative prices.

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Definitions:

Numerical Approach

A method that involves applying algorithms and numerical techniques to solve mathematical problems.

External Funding Requirements

The amount of money a business needs to raise from outside sources to finance its operations and growth.

Accruals

Accounting adjustments for revenues and expenses that have been earned or incurred but not yet recorded in the accounts, to reflect the real-time financial performance.

Dividends Paid

The portion of a company's earnings that is distributed to shareholders as a payment.