Adam Smith's theory of the invisible hand posits that the most efficient allocation of resources is often achieved by:
A. collective action.
B. reducing economic inequality.
C. government intervention in the market.
D. the actions of independent, self-interested buyers and sellers.
Answer: D
You might also like to view...
The proportion of Southern farms relying on slaves rose between 1840 and 1860 . Plus, the scale economies of slavery aggravated the chronic shortage of good Southern farmland
Indicate whether the statement is true or false
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.
If a monopolist produces to a point at which marginal revenue is less than marginal cost then
A. profits will always be negative. B. the incremental cost of producing the last unit is less than the incremental revenue. C. profits are being maximized. D. the incremental cost of producing the last unit exceeds the incremental revenue.
Deterring entry might require a firm to
A) price their product closer to the competitive price than to the monopoly price. B) price their product closer to the monopoly price than to the competitive price. C) drop output almost to zero to show the consumers "who's boss." D) drop price almost to zero to get price below marginal cost.