The loss of the highest-valued alternative defines the concept of

Adam Smith, in his book, The Wealth of Nations, advocated:

a. socialism. b. an economy guided by an "invisible hand." c. government control of the "invisible hand." d. the adoption of mercantilism.

In a perfectly competitive capital market, when the firm's marginal revenue product of capital exceeds the market interest rate, the

a. firm is maximizing profit b. firm should increase its quantity demanded of loanable funds c. firm should decrease its quantity demanded of loanable funds d. capital market is in equilibrium e. firm should reduce the rate of interest