Which of the following best describes the invisible-hand concept?
A. The desires of resource suppliers and producers to further their own self-interest will
automatically further the public interest.
B. The nonsubstitutability of resources creates a conflict between private and public interests
and calls for government intervention.
C. The market system is the best system for overcoming the scarce resources-unlimited
wants problem.
D. Central direction by the government will improve resource allocation in a capitalistic
economy.
Answer: A
You might also like to view...
The value of a price index in the base year will always be zero
a. True b. False Indicate whether the statement is true or false
A firm will shut down in the short run if, for all positive levels of output,
a. its losses exceed its fixed costs. b. its total revenue is less than its variable costs. c. the price of its product is less than its average variable cost. d. All of the above are correct.