What is the "invisible hand"?
What will be an ideal response?
The invisible hand is a concept articulated by Adam Smith that suggests that competitive markets are efficient. Smith discussed how self-interested buyers and sellers, without government involvement, interact with one another to bring about market efficiency. In Smith's words, market participants are "led by an invisible hand to promote an end (efficiency) which was no part of his intention."
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The manager of the sales department (a profit center) at Harvey's HVAC, decides to outsource any sales training that the division needs since in house training is expensive, even though the outsourced training does not cover the company's repair and warranty information from the service department. Who is making a bad decision?
a. The Sales department b. The Service department c. The Training division d. None of the above
In general, the number of years it will take for income to double at the current real growth rate is approximately:
A. 70 divided by the growth rate. B. 50 divided by the growth rate. C. 7 times the growth rate. D. 5 times the growth rate.
A decrease in equilibrium price increases consumer surplus because existing consumers leave the market due to this change in price
a. True b. False Indicate whether the statement is true or false
If people had been expecting prices to rise but in fact prices fell, then who among the following would benefit?
a. lenders and people holding a lot of currency b. lenders but not people holding a lot of currency c. people holding a lot of currency but not lenders d. neither lenders nor people holding a lot of currency