11) One tenet of classical economics is that A) the role of the government should be limited, since the market will always be self-correcting. B) the government should intervene whenever necessary to avoid any unemployment. C) wages and prices are "sticky downward." D) the government should set a minimum wage slightly above the natural market equilibrium rate.

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Business

Kaydence Keith

28 July, 11:58

11) One tenet of classical economics is that A) the role of the government should be limited, since the market will always be self-correcting. B) the government should intervene whenever necessary to avoid any unemployment. C) wages and prices are "sticky downward." D) the government should set a minimum wage slightly above the natural market equilibrium rate.

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Answers (1)

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Jaidyn Dunlap · Answer 1

The correct answer is A) the role of the government should be limited, since the market will always be self-correcting.

Explanation:

Principle of minimum state intervention, free market or laissez faire: at least government, the best, economic processes were considered as capable of self-regulation, in other words, economic forces themselves will direct production, exchange and consumption to Its most efficient level. State action must be confined to enforcing individual rights (especially property rights), providing national defense and some public services of general interest (justice, some types of education, etc.).