Briefly describe the concept of the "invisible hand."
What will be an ideal response?
The invisible hand suggests that a competitive market attains allocative efficiency simply by the forces of supply and demand, with no government involvement needed to organize the resources, or set the efficient price and quantity.
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Which of the following statements is correct?
A) When a line slopes downwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related. B) When a line slopes upwards moving to the right, the variable measured on the x-axis and the variable measured on the y-axis are directly related. C) The higher the temperature, the more ice cream people consume. Thus the temperature and ice cream consumption are inversely related. D) If two variables are directly related, a graph of the two variables has a negative slope. E) None of the above statements is correct.
How does the treatment of international transactions differ with respect to gross national product and gross domestic product? Explain. Why do you think that the U.S government has switched from using GNP to using GDP
What will be an ideal response?
A gift from the British prime minister to the American president would be classified as a _____ in the balance of payments account
a. capital transfer b. capital receipt c. universal receipt d. unilateral transfer e. foreign aid
Within a country, the domestic price of a product will equal the world price if
a. trade restrictions are imposed on the product. b. the country allows free trade. c. the country chooses to import, but not export, the product. d. the country chooses to export, but not import, the product.