Which of the following best describes the "invisible hand" concept?
A. Ample regulation of business by the government will maximize the public's best interests
B. The market system works best when resources are free to move from one use to another
C. The problem of scarcity can best be overcome in a system of mixed capitalism
D. Self-interest in a market system will automatically promote the public interest as well
Answer: D
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The most efficient way to encourage the growth of an infant industry is through
A) a voluntary export restraint. B) a tariff. C) a subsidy. D) an import quota.
Which of the following is not a basic characteristic of a perfectly competitive market?
a. a large number of buyers and sellers b. significant nonprice competition among firms c. a standardized product produced by firms d. no barriers to entry e. no barriers to exit
The law of supply states that, other things equal, when the price of a good rises, the quantity supplied of the good falls
a. True b. False Indicate whether the statement is true or false
Davy's Doggie Daycare rents a warehouse and field for $2,000 a month to house its boarding pooches. Farmer Fred owns the property, he used to use it for farming and made $3,000 a month, but has since retired. What is the cost of the warehouse and field to Davy?
A. It is an implicit cost of $3,000. B. It is an explicit cost of $2,000. C. There is both an explicit and implicit cost totaling $5,000. D. It is an implicit cost of $0.