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.

---

Definitions:

Powerlessness

A state of feeling unable to control, influence, or affect outcomes; often associated with feelings of helplessness.

Iron Law

A principle stating that oligarchy is inevitable as an organizational size increases, due to the necessity of leadership hierarchy.

Power Imbalances

Situations where one party has more control or influence over another, potentially leading to unfair practices or unequal treatment.

Forces

Factors or influences that cause change in behavioral or situational dynamics within individual, group, or organizational levels.