Adam Smith's invisible hand principle stresses
a. that benevolence is a powerful motivator that encourages individuals to engage in productive economic activity.
b. the tendency of the competitive market process to direct self-interested individuals into activities that enhance the economic welfare of society.
c. the potential of government regulation as a means of bringing the self interest of individuals into harmony with the economic welfare of society.
d. the tendency of self-interested individuals to pursue activities that benefit themselves but harm the overall economic welfare of society.
B
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For a monopolist, as output expands, price and marginal revenue become more divergent (i.e., are farther apart)
a. True b. False
Import quotas and tariffs produce some common results. Which of the following is not one of those common results?
a. Total surplus in the domestic country falls. b. Producer surplus in the domestic country increases. c. The domestic country experiences a deadweight loss. d. Revenue is raised for the domestic government.