Entrepreneurship is the act of starting new firms and taking the risks that are necessary in business opportunities.

Imagine a hypothetical world in which, over the last fifty years, both real GDP and prices have trended downward in most countries. Continuing falls in the level of real GDP and the price level can be explained by

a) neither technological ability nor changes in the money supply can explain continuing falls in the level of real GDP contraction and the price level. b) continuing losses in technological ability alone. c) continuing losses in technological ability and continuing decreases in the money supply. d) continuing decreases in the money supply along.

Adam Smith's Wealth of Nations, written in 1776, describes the market's invisible hand representing the

A) King of England's control over the colonies. B) control all governments have in organizing the market. C) efficiency the market achieves without the interference of governments. D) inefficiency of markets when governments do not organize them. E) invisible command system that efficiently allocates resources.