If Buyers and Sellers Were Free to Pursue Their Own

question 62

Multiple Choice

If buyers and sellers were free to pursue their own selfish interests,according to the invisible hand theory,the result would be

• A) anarchy.
• B) exploitation of workers and natural resources.
• C) an equitable allocation of resources.
• D) poor customer service.
• E) an efficient allocation of resources.

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Definitions:

Risk of Loss

The financial risk borne by a party in the event that goods are lost, damaged, or destroyed during transportation or storage.

Sale or Return

A sales agreement allowing the buyer to return unsold goods to the seller without obligation within a specified period.

On Approval

"On approval" is a transaction condition allowing a buyer to take possession of goods before deciding to complete the purchase, subject to the goods’ return if not satisfied.

Personalized Sweatshirts

Custom-made sweatshirts tailored to include specific designs, names, or emblems as requested by the purchaser.