The idea of the "invisible hand" tells us that individuals will pursue:
A. mutually beneficial trades with other individuals to maximize surplus.
B. trades in which they will be the clear winner and the other will be a loser.
C. the most equitable outcome possible.
D. as few government policies as possible so the market can act freely.
A. mutually beneficial trades with other individuals to maximize surplus.
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The distribution of U.S. income is not bell-shaped because
A) there are more households with incomes below the mean income than above the mean income. B) there are more households with incomes above the mean income than below the mean income. C) the mode income equals the mean income. D) the income distribution is bell shaped.
A major impact of the transatlantic telegraph was
A) a reduction in time required to complete a financial transaction between New York and London B) an increase in labor flows across the Atlantic. C) a decrease in trade barriers between the United States and Europe. D) an increase in trade conflicts between the United States and Europe. E) that nations abandoned the gold standard.
Which of the following is TRUE about monopolistic competition?
A) One firm serves as the entire industry. B) A small number of firms serve the entire market. C) It is competition among many firms producing similar but differentiated products. D) The pattern of production and trade is difficult to predict. E) It enjoys no economies of scale.
Examples of incentive pay include
a. allowing employees a certain number of personal days b. royalties to textbook authors c. cleaning the worksite with weekly janitorial service d. offering a certain number of sick days