According to Adam Smith's invisible hand doctrine:
a. self-interest best serves the interests of society.
b. laissez faire must be improved by government intervention.
c. producers should serve the best interests of society.
d. only laissez faire mercantilism best serves the interests of society.
a
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If your total satisfaction increases when you consume another unit, your marginal utility must be
A) positive. B) increasing. C) decreasing. D) negative.
Typically, as a firm hires additional workers, the marginal product of labor
a. decreases, and the value of the marginal product of labor decreases. b. stays constant, and the value of the marginal product of labor decreases. c. decreases, and the value of the marginal product of labor stays constant. d. decreases, and the value of the marginal product of labor increases.
Which of the following statements best characterizes the Keynesian view of business cycles?
A. Fluctuations in business activity occur in regular and predictable patterns that cannot be altered. B. Business cycles are symptoms of underlying problems and should be dealt with through activist government policies. C. Fluctuations in business activity are to be expected and should be accepted just as changes in the seasons are accepted. D. The appropriate macroeconomic policy can easily eliminate all fluctuations in business activity.
The concept of diminishing marginal benefits means that? __________.
A. the more of a good that you? consume, the lower is your overall benefit from that good. B. each additional unit consumed is worth less to you than the previous one. C. each additional unit consumed is worth more to you than the previous? one, but the additional benefit grows at a diminishing rate. D. as you consume more of a? good, your willingness to pay for that good increases faster than the benefit you receive.