According to the classical economists, those who are not working ?
Correct answer: A. have chosen not to work at the market wage
- A. have chosen not to work at the market wage
- B. have given up looking for a job but would accept a job at the current wage if one were offered to them.
- C. are too productive to be hired at the current wage
- D. are unable to find a job at the current wage rate
Explanation
Classical economists assume flexible wages clear the labour market, so anyone not working at the market wage has chosen not to work at that wage. Involuntary unemployment is therefore inconsistent with the classical view.
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