The invisible hand principle indicates that competitive markets can help promote the efficient use of resources
a. only if buyers and sellers really care, personally, about economic efficiency.
b. even when each market participant cares only about their own self interest rather than about the overall efficiency of resource use.
c. even if business firms fail to produce goods efficiently.
d. if, and only if, businesses recognize their social obligation to keep costs low and use resources wisely.
B
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The discount rate is the interest rate that the Federal Reserve charges banks for borrowing from the Fed
Indicate whether the statement is true or false
When a single person (or small group) has the ability to influence market prices, there is
a. competition. b. market power. c. an externality. d. a lack of property rights.
The public assistance program that economists believe can promote economic equality at the least cost in economic efficiency is
A. Aid to Families with Dependent Children (AFDC). B. a negative income tax (NIT). C. food stamps. D. Medicaid.
Which one of the following is not an excise tax of the federal government?
A. Gasoline tax B. General sales tax C. Tobacco tax D. Alcoholic beverage tax