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 downwards and market failure is inevitable.
E)Markets are basically competitive and prices are flexible.

Question

Quizplus · Accepted Answer

The hands-off view of the classical school rests on two simple propositions: that markets are basically competitive and that prices are flexible. This means that the market will always find a way to reach equilibrium and that no government intervention is necessary.

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