New Classical Economists Believe That

question 99

Multiple Choice

New classical economists believe that:

• A)market failure on a large scale is possible.
• B)disequilibrium in commodity markets demand government intervention.
• C)people are completely aware and informed about everything that is happening.
• D)wages are fixed in the short run.
• E)people purposefully substitute non-labor activities for work during recession.

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Definitions:

Determinism

The philosophical belief that all events, including human actions, are ultimately determined by causes external to the will.

Cognitive Processes

Mental activities involved in the acquisition, storage, manipulation, and retrieval of knowledge.

Modeling Therapy

A therapeutic technique involving learning through the observation and replication of others.

Unconscious Resistances

Psychological mechanisms that operate without an individual's awareness to block uncomfortable or distressing thoughts and feelings from entering consciousness.