Which of the following is not consistent with a self-regulating economy?
A) flexible prices
B) flexible wages
C) a labor market in which wages fall if there is a surplus
D) a labor market in which wages rise if there is a shortage
E) none of the above (all are consistent with a self-regulating economy)

Question

Quizplus · Accepted Answer

All of the options are consistent with a self-regulating economy. In a self-regulating economy, the market forces of supply and demand determine prices and wages. In times of surplus, such as excess labor, wages will fall as workers compete for fewer jobs. Conversely, in times of shortage, such as an abundance of job openings, wages will rise as companies compete for the best workers. This flexibility helps keep the economy stable and self-regulating.

Which of the Following Is Not Consistent with a Self-Regulating