According to Adam Smith's invisible hand principle, productive actions that promote the general welfare of society will be undertaken when
a. workers are able to organize and develop strong unions.
b. competitive markets direct the actions of self-interested individuals.
c. the selfish instincts of individuals are controlled.
d. political representatives are elected democratically.
b. competitive markets direct the actions of self-interested individuals.
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Objections to free trade
a. arise because trade harms everyone b. arise when some groups within a nation are harmed by trade c. arise because importers and exporters are often the same people d. are inconsistent with economic rationality e. arise because people prefer not to consume foreign-produced goods
New oak tables are normal goods. What would happen to the equilibrium price and quantity in the market for oak tables if the price of maple tables rises, the price of oak wood rises, more buyers enter the market for oak tables, and the price of the glue used in the production of the new oak tables increased?
a. Price will fall, and the effect on quantity is ambiguous. b. Price will rise, and the effect on quantity is ambiguous. c. Quantity will fall, and the effect on price is ambiguous. d. Quantity will rise, and the effect on price is ambiguous.