Adam Smith in his 1776 book the Wealth of Nations describes the concept of “an invisible hand.” Explain what he means by an “invisible hand.”
Please provide the best answer for the statement.
Smith describes how businesses that operate to promote their own self-interest in the attempt to make a profit from providing a product for society also wind up promoting or advancing the public or social interest. Businesses provide products to the market that they hope consumers will want to buy. Consumers will benefit from having such products available. At the same time, businesses will try to produce those products at the least possible cost to try to maximize their profit, thus helping consumers obtain more goods and services per dollar spent. Through the competitive market, businesses direct resources to their highest and best use that benefits the businesses and society as if guided by an “invisible hand.”
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A tax, in which amounts transferred as gifts and bequests are jointly taken into account, is known as
A. inheritance tax. B. death tax. C. accessions tax. D. unified transfer tax.
Monopolies that price discriminate do so because
A. it keeps them out of trouble with the government. B. it is more efficient. C. they can increase their profits. D. they are able to do so and no one else can.
For a monopolist:
a. price equals average total cost. b. price is above marginal revenue. c. marginal revenue equals zero. d. marginal cost equals zero. e. average total cost equals marginal cost.
How do the characteristics of immigrants influence the effects of immigration on the receiving country? What are the implications for the receiving country government policy toward immigration?
What will be an ideal response?