The invisible hand promotes society's interests because:
A. individuals pursuing their self-interest will try to produce goods and services that people in
society want and are willing to purchase.
B. individuals will produce goods for others out of concern for their fellow human beings.
C. it makes sure that everyone wins from competition in the market.
D. government regulation pushes business into producing the right mix of goods and services.
Answer: A
You might also like to view...
The expansion induced by a rise in the money stock will be greatest
A) the higher the level of capital mobility in an economy. B) the lower the level of capital mobility in an economy. C) when the economy has a fixed exchange rate. D) when this rise is fully sterilized by the monetary authority.
Which of the following statements supports the passive approach to close a recessionary gap?
a. It is likely that policies will be subject to time lags. b. Prolonged unemployment may cause the economy's potential real GDP to fall. c. Workers' skills may grow rusty during a prolonged recession d. It is likely that unemployed workers will drop out of the labor force. e. Firms may neglect their capital stock during a prolonged recession.