The invisible hand principle indicates that competitive markets can help promote the efficient use of resources
A) if, and only if, businesses recognize their social obligation to keep costs low and use resources wisely.
B) even when market participants care only about their own self interests rather than about the overall efficiency of resource use.
C) only if buyers and sellers really care, personally, about economic efficiency.
D) even if business firms fail to produce goods efficiently.
B) even when market participants care only about their own self interests rather than about the overall efficiency of resource use.
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Based on Scenario 1 above critically evaluate the following statement. "Because of the disparities in skills between these two men it will not be beneficial for them to trade with one another."
What will be an ideal response?
The ability to keep rivals out of the market is the recipe for creating and maintaining a monopoly.
Answer the following statement true (T) or false (F)
New York City increased regulated taxi fares by 17.5 percent and expected taxi revenue to increase by the same amount. The taxi commission believed taxi demand was
a. unit elastic. b. somewhat elastic. c. perfectly elastic. d. perfectly inelastic. e. somewhat inelastic
The reserve ratio is 20 percent. The Fed buys $1 million in government securities from a bond dealer by transmitting the funds to the dealer's deposit account at Bank A. Bank A loans the maximum amount possible to a construction company, which buys materials from a lumber yard. The lumberyard deposits the construction company's check in Bank B. What is the maximum loan Bank A can now make and the maximum loan Bank B can now make?
A. Bank A: 0; Bank B: $640,000 B. Bank A: 0; Bank B: $800,000 C. Bank A: $800,000; Bank B: 0 D. Bank A: $800,000; Bank B: $640,000