Which of the following most accurately describes the invisible hand concept?
a. Wise central planning by government is necessary for the efficient use of resources.
b. In a democratic setting, majority rule will result in the efficient use of resources.
c. In a market setting, when individuals pursue their own interests, they simultaneously tend to promote the public interest.
d. In a market setting, when individuals pursue their own interests, they tend to engage in activities that lower the overall economic welfare of society.
C
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Refer to the below graph. Consider a situation where price increases from P3 to P4. In this price range, demand is relatively:
A. Inelastic because the loss in total revenue (areas E + F + G) is greater than the gain in total revenue (area A)
B. Elastic because the loss in total revenue (areas E + F + G) is greater than the gain in total revenue (area A)
C. Elastic because the loss in total revenue (area A) is greater than the gain in total revenue (areas E + F + G)
D. Inelastic because the loss in total revenue (area A) is greater than the gain in total revenue (areas E + F + G)
The second largest source of revenue for the federal government is the
A. import tax. B. payroll tax. C. export tax. D. federal property tax.