The "invisible hand" refers to
a. the marketplace guiding the self-interests of market participants into promoting general economic well-being.
b. the fact that social planners sometimes have to intervene, even in perfectly competitive markets, to make those markets more efficient.
c. the equality that results from market forces allocating the goods produced in the market.
d. the automatic maximization of consumer surplus in free markets.
a
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A world price of a good:
A) is the lowest price for which the good is available in any country in the world. B) is the price prevailing in the country with the highest production of the good. C) is equal to the lowest opportunity cost of producing the good in any country in the world. D) is the prevailing price of the good on the global market.
The type of unemployment created by the normal rate of reentry and entry into the labor force is
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) seasonal unemployment.