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

Multiple Choice

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.