Economists use the phrase “invisible hand” to describe ______.
a. how the government controls the market system as if directing traffic
b. the dignity of manual labor and the market system’s dependence on it
c. the way goods are passed from producers to buyers in the marketplace
d. how prices adjust to direct buyers and sellers to socially desirable outcomes
d. how prices adjust to direct buyers and sellers to socially desirable outcomes
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Assume that both the demand curve and the supply curve for DVD players shift to the left but the supply curve shifts more than the demand curve. As a result,
A) both the equilibrium price and quantity of DVD players will decrease. B) the equilibrium price of DVD players will decrease; the equilibrium quantity may increase or decrease. C) the equilibrium price of DVD players may increase or decrease; the equilibrium quantity will increase. D) the equilibrium price of DVD players will increase; the equilibrium quantity will decrease.
In the monetary small open-economy model with a fixed exchange rate, an increase in the foreign price level has which impact on domestic money demand?
A) It increases it. B) It decreases it. C) It has no impact. D) It depends.
Suppose that the inverse demand for a downstream firm is P = 150 ? Q. Its upstream division produces a critical input with costs of CU(Qd) = 5(Qd)2. The downstream firm's cost is Cd(Q) = 10Q. When there is no external market for the downstream firm's critical input, the net marginal revenue for the downstream firm is:
A. NMRd = 140 ? Q. B. NMRd = 140 ? 2Q. C. NMRd = 150 ? Q. D. NMRd = 150 ? 2Q.
Which of the following policies has succeeded in reducing fishery catch sizes?
A. Limiting the length of the catch season. B. Limiting the number of boats allowed in a given area. C. Limiting catch size (TAC). D. All of these.