Adam Smith wrote that the:
a. government should control the economy.
b. public or collective interest is not promoted by people pursuing their self interest.
c. pursuit of private self interest promotes the public interest in a market economy.
d. economic problems of eighteenth-century England were caused by free markets.
c
You might also like to view...
Mrs. Smith is given a government subsidy for an apartment in a public housing project. The apartment
A) is not subject to the principle of rival consumption. B) is not a public good. C) has widespread benefits and concentrated costs. D) is subject to the free-rider problem.
One of the most important determinants of a good's price elasticity of demand is
A) the profits of suppliers. B) the numbers of buyers in the market. C) the ease with which consumers can substitute other goods for that product. D) the cost of producing the good.
If the supply curve for land was a vertical line, then any payment made for land would be considered
A) as economic rent. B) as economic lease. C) as economic interest. D) as an opportunity lease payment.
Perfectly competitive firms produce up to the point where the price of the good equals the marginal cost of producing the last unit. This condition is referred to as
A) productive efficiency. B) constant returns to scale. C) allocative efficiency. D) perfectly competitive efficiency.