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)Industrial policy is inevitable and all prices are flexible.
C)Market failure occurs and prices are rigid.
D)Wages are sticky downward and market failure is inevitable.
E)Markets are basically competitive and prices are flexible.

Question

Quizplus · Accepted Answer

The classical school believes that markets are self-regulating and efficient, assuming that markets are competitive and prices are flexible, allowing supply and demand to reach equilibrium without government intervention.

The Hands-Off View of the Classical School Rests on Which