Adam Smith's idea of the "invisible hand" says that given a country's resources and its initial distribution of wealth, the use of markets will
A. eliminate problems of hunger and dissatisfaction.
B. eliminate inequalities between the rich and the poor.
C. make people as economically well off as possible.
D. insulate a nation from the effects of political instability.
Answer: C
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Which formula is correct?
A) S = Yd - C B) Yd + S = C C) Yd + C = S D) Yd × S = C
Government can intervene in the market through
a. Price floors b. Price ceilings c. Taxes d. All the above
The relationship between NPV and IRR is such that :
a. both approaches always provide the same ranking of alternatives b. the IRR of a project is equal to the firm's cost of capital when the NPV of a project is $0 c. if the NPV of a project is negative, then the IRR must be greater than the cost of capital d. all of the above e. none of the above
A profit-maximizing monopolist will continue expanding output as long as:
a. marginal revenue exceeds marginal cost. b. marginal revenue is positive. c. the cost of producing an additional unit exceeds the marginal revenue derived from the unit. d. economic profit is more than zero.