The "invisible hand" refers to
a. the marketplace guiding the self-interests of market participants into promoting general economic well-being.
b. the fact that social planners sometimes have to intervene, even in perfectly competitive markets, to make those markets more efficient.
c. the equality that results from market forces allocating the goods produced in the market.
d. the automatic maximization of consumer surplus in free markets.
a
You might also like to view...
Today, Walt Disney World charges different customers different prices for admission. This pricing strategy is called
A) odd pricing. B) arbitrage. C) cost-price pricing. D) price discrimination.
A college student's choice of a major and an occupation reflects:
a. each college student's future expectation of wage inflation. b. a lack of information on the part of the students. c. a lack of proper education and vocational training. d. the return on investment in human capital. e. the opportunity costs each college student faces.
If the number two and number three firms in an industry with 10 firms merge, what happens to that industry's concentration ratio?
A. It rises B. It falls C. It remains the same D. There is not enough information to determine whether it rises, falls, or remains the same.
The profit-maximizing level of employment by the monopsonist in the labor market shown below will be:
A. A
B. B
C. C
D. D