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.

Question

Quizplus · Accepted Answer

The classical model assumes that individuals behave according to their own self-interest, not the public interest. This assumption underlies the idea that markets will operate efficiently and lead to optimal outcomes for society as a whole.

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