The invisible hand principle indicates that competitive markets can help promote the efficient use of resources
What will be an ideal response?
even when each market participant cares only about their own self interest rather than about the overall efficiency of resource use
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A form of business whose profits are taxed twice is
A) a proprietorship. B) a partnership. C) a corporation. D) either a proprietorship or a partnership, depending on other information.
The Phillips Curve will shift because of:
A. expected inflation. B. normal inflation. C. hyperinflation. D. core inflation.
Refer to the figure below. The deadweight loss at the market equilibrium quantity is equal to the area ________.
A. ½ × EF × AC B. ½ × FG × BD C. ½ × GH × BD D. ½ × FG × AC
If eight lemons (low quality) and two plums (high quality) are supplied and buyers assume that there is a 40% chance of getting a lemon, there is an equilibrium.
Answer the following statement true (T) or false (F)