The "invisible hand" refers to
a. how central planners made economic decisions.
b. how the decisions of households and firms lead to desirable market outcomes.
c. the control that large firms have over the economy.
d. government regulations without which the economy would be less efficient.
b
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The figure above shows a nation's production possibilities frontier. In the figure, point A shows
A) the minimum quantity of pizza that the society must produce. B) the maximum quantity of pizza that can be produced. C) an unattainable point. D) an attainable point with unemployed resources. E) More information is needed to determine which of the above answers is correct.
To an American, the demand curve for euros tells
a. that Americans do not want to purchase euros b. how many euros Americans would want to buy in a given time period, at each different exchange rate c. the real interest rate on foreign currency over time d. how many Americans are willing to buy euros e. how many euros have been purchased during a given time period
Suppose both the demand for and supply of salsa increase (although not necessarily by the same amount). What can we conclude about changes in the price and quantity of salsa?
A. Both the price and quantity decrease. B. The quantity increases but the change in the price cannot be determined. C. Both the price and quantity increase. D. The price increases but the change in the quantity cannot be determined.
If a Balanced Budget Amendment to the U.S. Constitution were passed, during economic prosperity, such an amendment would
A. have no impact on the economy. B. dampen those good times. C. cause those good times to be even better. D. throw the economy into a depression.