Which of the Following Statements About the Classical Model of the Economy

question 349

Multiple Choice

Which of the following statements about the classical model of the economy is FALSE?

• A) Savings and investment will always be equal.
• B) Wages and prices are flexible.
• C) The economy will always move toward, or be at, full employment.
• D) Individuals pursue the public interest, not their own self-interest.

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Definitions:

Debt to Total Assets

A financial ratio that shows the proportion of a company's assets that are financed through debt.

Basic Earnings per Share

A measure of a company's profitability, calculated by dividing net income by the number of outstanding common shares.

Industry Averages

Statistical measures that represent the typical value or norm within a particular industry, used for benchmarking and comparative analysis.

Horizontal Analysis

Horizontal analysis, also known as trend analysis, is a financial analysis technique that compares historical financial data over a series of periods to identify trends, increases, or decreases in financial performance.