Which of the following is a major implication of the invisible hand concept?
a. Government-operated firms tend to have lower costs than private sector firms.
b. When directed by competitive market prices, the actions of self-interested individuals will tend to promote overall economic prosperity.
c. Prosperity cannot be achieved unless the selfish nature of people can be changed.
d. Competition is harmful to the health of an economy because it results in wasteful duplication.
b. When directed by competitive market prices, the actions of self-interested individuals will tend to promote overall economic prosperity.
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Prisoners in World War II POW camps traded products for other products, a process referred to as
A) central planning. B) advantage exchange. C) barter. D) rationing.
When the rate of interest rises, the resulting change in the demand for capital is shown graphically by:
a. a movement down along the demand curve. b. a rightward shift of the demand curve. c. a leftward shift of the demand curve. d. a movement up along the demand curve. e. an outward rotation of the demand curve.