In the absence of externalities, the "invisible hand" leads a market to maximize
a. producer profit from that market.
b. total benefit to society from that market.
c. both equality and efficiency in that market.
d. output of goods or services in that market.
b
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If a dollar today will likely have more purchasing power because of inflation, then a dollar a year from now ________ a dollar today
A) will be more valuable than B) will have the same value as C) will be less valuable than D) may be more valuable or less valuable than
A student makes the following argument: "When a market is in equilibrium, there is no consumer surplus. We know this because in equilibrium, the market prices is equal to the price consumers are willing to pay for the good. Briefly explain whether you agree with the student's argument.
The major protection against sudden mass attempt to withdraw cash from banks is the:
a. Federal Reserve. b. deposit insurance provided by the FDIC. c. gold and silver backing the dollar. d. Consumer Protection Act.
The primary assumption made in Rawlsian justice is that
A. each individual tries to maximize his or her own well-being at the expense of everyone else. B. people are risk averse. C. the marginal utility of income is decreasing. D. each person will produce according to his or her ability regardless of the reward.