Adam Smith's invisible hand principle stresses the tendency of
A) government regulation to bring the self interest of individuals into harmony with the economic welfare of society.
B) compassion to encourage productive economic activity.
C) the competitive market process to direct self-interested individuals into activities that enhance the economic welfare of society.
D) self-interested individuals to pursue activities that benefit themselves, but harm the overall economic welfare of society.
C) the competitive market process to direct self-interested individuals into activities that enhance the economic welfare of society.
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Which of the following would shift the supply curve for energy drinks to the left?
A) a decrease in the number of firms that produce energy drinks B) an increase in consumer income (assuming that energy drinks are normal goods) C) a decrease in the expected future price of energy drinks D) a decrease in the price of an input used to produce energy drinks
According to the text, which of the following are both imports and exports for the United States?
A. Cars, computers, and auto parts. B. Computers, oil, and auto parts. C. Baseballs, computers, and cars. D. No single product can be both an import and an export for a given country.
Refer to the accompanying graph. The short-run profit-maximizing output for the monopolistic competitive firm is:
A) 0 (zero)units per week.
B) 50 units per week.
C) 60 units per week.
D) 85 units per week.
E) 90 units per week.
An overvalued exchange rate is an exchange rate:
A. that has an officially fixed value greater than its fundamental value. B. that has an officially fixed value less than its fundamental value. C. at which the quantities of currencies demanded and supplied in the foreign exchange market are equal. D. that equals the number of units of a foreign currency over the number of units of domestic currency.