In markets, the invisible hand allocates resources efficiently
a. in all cases.
b. when the buyers and sellers are the only interested parties.
c. when there are positive externalities, but not when there are negative externalities.
d. when there are negative externalities, but not when there are positive externalities.
b
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We measure the marginal ________ of a good by what a ________ for another unit of the good
A) benefit; person must pay B) cost; person is willing to pay C) benefit; person is willing to pay D) cost; person's preferences are
Politicians often highlight the plight of a single individual as a reason to support a particular project or agenda. In this case, politicians are often engaged in
A) the Allais effect. B) the Byrd effect. C) framing. D) prospect theory.
Increases in productivity are not responsible for increased standards of living in the United States
a. True b. False Indicate whether the statement is true or false
An increase in the productivity of labor induces
A. an increase in the cost of labor. B. a firm to offer a higher wage for workers since the workers are now more productive. C. an increase in the demand for labor. D. a firm to hire fewer workers since fewer workers are needed with the increase in productivity.