The idea that firms and resource suppliers in seeking to further their own self-interests in a competitive market economy also simultaneously promotes the public or social interest is a description of:
a. The "invisible hand"
b. The guiding function of prices
c. "Dollar votes"
d. Capital accumulation
Answer: a. The "invisible hand"
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If you negotiated a salary based on an anticipated inflation rate of 4 percent, and the actual inflation rate turned out to be 6 percent
A) your employer would have gained at your expense. B) your real wage will increase, but your nominal wage will decrease. C) the purchasing power of your wages will not change, since purchasing power is based on your nominal wage. D) the purchasing power of your real wages would be more than you anticipated.
When economists disagree about whether a policy is fair, they are expressing a difference in
Refer to the information provided in Table 33.4 below to answer the question(s) that follow. Table 33.4GermanyChileBeerWineBeerWine(cases)(cases)(cases)(cases)75030 060152412453018 24304512 361560 6 48075 0 60 Refer to Table 33.4. In Chile, the opportunity cost of 1 case of wine is
A. 1/2 case of beer. B. 1 case of beer. C. 2 cases of beer. D. 4 cases of beer.
When the government runs a deficit, the interest rate tends to:
A. fall. B. rise. C. remain unchanged. D. rise or fall, depending on how the deficit is financed.