The "invisible hand" is
a. used to describe the welfare system in the United States.
b. a concept developed by Adam Smith to describe the virtues of free markets.
c. a concept used by J.M. Keynes to describe the role of government in guiding the allocation of resources in the economy.
d. a term used by some economists to characterize the role of government in an economy — inevitable but invisible.
b
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Why does your marginal rate of substitution between chocolate and vanilla ice cream decline continuously as you move rightward on your indifference curve between the two?
What will be an ideal response?
Jenny Magalnick is a medical researcher at the National Institutes of Health. She produces a(n)
a. transfer b. entitlement c. public good d. merit good e. government good
If the demand decreases in a perfectly competitive market, firms will likely:
A. exit the market in hopes of capturing profits elsewhere. B. experience negative profits in the short run. C. experience zero profits in the long run. D. All of these are true.
A person's tax obligation divided by her income is called her
a. marginal social tax rate. b. marginal private tax rate. c. marginal tax rate. d. average tax rate.