Classical theories are based on the assumption of perfect resource mobility.

Question

Quizplus · Accepted Answer

Classical theories in economics assume that resources are perfectly mobile, meaning that they can quickly move from one sector or industry to another in response to changes in demand or production. This assumption underlies many of the predictions and conclusions of classical economic models, such as the tendency toward long-run equilibrium and the efficiency of market outcomes.

Classical Theories Are Based on the Assumption of Perfect Resource