The concept of "an invisible hand" led Adam Smith to believe that
a. if each person looks out for himself or herself, then chaos will inevitably ensue.
b. pursuit of self-interest promotes economic well-being for society as a whole.
c. governmental rule actually results in greater good than is apparent at the time.
d. traditional religion is an appropriate guide for human behavior.
e. All of the above are correct.
b
You might also like to view...
According to this Application, some economists believe that recessions which are caused by ________ normally have ________ recoveries
A) high oil prices; faster B) financial crises; faster C) high oil prices; slower D) financial crises; slower
If a decrease in income leads to a decrease in the demand for mac and cheese, then mac and cheese is
A) a complement. B) a necessity. C) a normal good. D) a neutral good.
Which of the following is not a reason for firms to choose a salary system rather than a commission system to compensate their employees?
A) If workers are paid on the basis of the number of units of output they produce, they may become less concerned about quality. B) Commission compensation systems are riskier for employees than a salary system, and many workers dislike risk. C) Research has shown that most companies will find that a salary system will be more profitable than a commission system. D) It is often difficult to attribute output to particular workers.
Product differentiation complicates the study of oligopolies because such markets may not
a. be efficient. b. have prices equal to marginal cost. c. have free entry and exit. d. obey the law of one price.