Classical economists believe that a market economy will normally

Question

Quizplus · Accepted Answer

Classical economists believe in the self-regulating nature of the market economy. They argue that with a competitive market, supply and demand forces will work together to achieve full-employment output. Therefore, choice B is the correct answer. The other choices are incorrect as Classical economists do not believe that the market economy will suffer from extended periods of sustained unemployment (choice A), degenerate into pure monopolies in most industries (choice C), or eliminate the problem of economic scarcity (choice D).

Classical Economists Believe That a Market Economy Will Normally