Adam Smith suggested that an invisible had guides market economies. In this analogy, what is the baton that the invisible hand uses to conduct the economic orchestra?
a. the government
b. prices
c. subsidies
d. the Federal Reserve
b
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Wages that are higher than the current market wage:
A) reduce the cost of production of various goods. B) lower the aggregate price index. C) dissuade workers from shirking. D) lower the productivity of workers.
The figure above provides information about Light-U-Up Utilities, which is a natural monopoly that provides electricity. If Light-U-Up is unregulated, it will produce ________ and sell at a price of ________
A) 200 kwh; 10¢ per kwh B) 200 kwh; 30¢ per kwh C) 300 kwh; 20¢ per kwh D) 400 kwh; 10¢ per kwh
All else constant, a decrease in the per unit price of labor would create an incentive for a firm manager to substitute labor for capital in the firm's production process
Indicate whether the statement is true or false
A country undertakes a devaluation in order to:
A. increase its net exports. B. decrease its net exports. C. raise the value at which its currency is pegged. D. move to a flexible exchange rate system.