Which of the following is a major implication of the invisible hand concept?
A) When directed by competitive market prices, the actions of self-interested individuals will tend to promote overall economic prosperity.
B) Prosperity cannot be achieved unless the selfish nature of people can be changed.
C) Government-operated firms tend to have lower costs than private sector firms.
D) Competition is harmful to the health of an economy because it results in wasteful duplication.
A) When directed by competitive market prices, the actions of self-interested individuals will tend to promote overall economic prosperity.
You might also like to view...
"The real interest rate is found by dividing the nominal interest rate by the CPI." Is this statement true or false?
What will be an ideal response?
Suppose Kate's Great Crete (KGC) has annual variable costs of VC = 30Q + 0.0025Q2 and marginal costs of MC = 30 + 0.005Q, where Q is the number of cubic yards of concrete it produces per year. In addition, it has an avoidable fixed cost of $50,000 per year. KGC's demand function is Qd = 20,000 - 400P. What is KGC's total revenue function?
A. TR = 50Q - 0.0025Q2 B. TR = 50Q + 0.0025Q2 C. TR = 20,000 - 400P D. TR = 50 - 0.005Q
A deficit will burden future generations
a. because the obligation to pay it off must be faced sooner or later. b. if it produces higher interest rates when the economy is near full employment. c. because future generations will have to pay taxes to fund the interest payments to Americans who hold the debt. d. All of the above are correct.
Each bank may lend money greater than its excess reserves.
Answer the following statement true (T) or false (F)