Adam Smith's theory of the invisible hand posits that the most efficient allocation of resources is often achieved by:
A. the actions of independent, self-interested buyers and sellers.
B. collective action.
C. reducing economic inequality.
D. government intervention in the market.
Answer: A
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When politicians debated the North American Free Trade Agreement (NAFTA), some told stories of U.S. workers whose jobs would be moved to Mexico. Which of the following arguments in favor of protection was being used?
A) Save domestic jobs argument B) National security argument C) Anti-dumping argument D) Infant-industry argument E) Diversity and stability argument
Sam's Scarves has 2 knitting machines and employs 2 people. They produce 15 scarves a day. If the firm hires an additional person, the 3 workers can produce 19 scarves a day other things remaining the same
The market for scarves is perfectly competitive and the price of a scarf is $20. The value of marginal product of the third worker is ________. A) $80 B) $300 C) $380 D) 4 scarves
What is viewed in the private sector as competition in the public sector is treated as _____
a. duplication b. destruction c. fighting d. economic warfare
Which approach to calculating GDP is computed using compensation of employees, rental income, profits, net interest, indirect business taxes, and depreciation?
a. The expenditure approach. b. The income approach. c. The product-market approach. d. The circular-flow approach.