Adam Smith used the metaphor of the "invisible hand" to explain how
A) business owners are benevolent.
B) markets mismatch buyers and sellers.
C) people acting on their own self-interest promote the interest of society as a whole.
D) the production possibilities frontier illustrates efficient outcomes.
C
You might also like to view...
The Phillips curve is thought to reflect the relationship between
A) unemployment and inflation. B) the price level and inflation. C) unemployment and real GDP. D) inflation and real GDP.
Which one of the following people is not a member of the labor force?
a. A full-time student who devotes all her time to her classes. b. A person who works 30 hours a week at Burger King and goes to school at night. c. The man who was fired last week and is searching for a new job. d. The President of the United States. e. A professional athlete.
Total variable costs: a. Increase when quantity produced increases
b. Decrease when quantity produced increases. c. Sometime increase and sometime decrease when quantity produced increases. d. Can sometimes be constant over a substantial range of output.
Refer to Figure 8.5. Suppose the firm increases output from 20 to 30 units. In the short run:
A. the firm will employ the same amounts of labor and capital as it would in the long run.
B. the firm will employ 5 more workers and 2 less units of capital than it would in the long run.
C. the firm will employ 5 fewer workers and 2 more units of capital than it would in the long run.
D. the firm will produce the output at a lower cost than it can in the long run.