Which of the following is NOT an assumption of the classical system?
A. There is no money illusion.
B. People are motivated by self interest.
C. Pure competition exists.
D. Wages and prices are inflexible.
Answer: D
Economics
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Which of the following can prevent markets from reaching efficiency? I. price regulations that cap the price that may be charged II. increasing marginal cost III. monopoly
A) I only B) I and II C) II and III D) I and III
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The absence of cyclical unemployment means the economy is at the natural unemployment rate
Indicate whether the statement is true or false
Economics