In his book, An Inquiry into the Nature and Causes of the Wealth of Nations, economist Adam Smith argued that individuals
A) always tend to act in an altruistic manner.
B) always consider the impact of their actions on the welfare of others.
C) are motivated by self-interest.
D) are never concerned with economic issues.
Answer: C
You might also like to view...
The government may enact contractionary fiscal policy if there are concerns about
A. excessive inflation. B. declining output. C. high unemployment. D. high tax rates.
Consider a production possibility frontier with jeans on the vertical axis and shoes on the horizontal axis. As the country moves along the frontier closer to the horizontal axis,
A) free lunches occur. B) more shoes are produced. C) more tradeoffs occur. D) more jeans are produced. E) the country eventually chooses an unattainable point.
Bertrand price competitors can recover some market power when they differentiate their products.
Answer the following statement true (T) or false (F)
If each of us relied exclusively on the market to determine what to buy, we would probably end up with few, if any:
a. streetlights. b. strawberries. c. CDs. d. raincoats. e. televisions.