Adam Smith's Invisible Hand Implied That Efficiency Could Be Attained

question 31

Multiple Choice

Adam Smith's invisible hand implied that efficiency could be attained if

• A)A Government committee coordinate production based on people's comparative advantage
• B)Government coordinated the price and quantities of goods and services produced
• C)Government would leave the price and output decisions to the market capitalist system
• D)Government provided subsidies and other incentives for production

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Definitions:

World's Income

The total amount of economic output or earnings generated globally within a specific time period.

Productive Resources

The inputs used in the production of goods and services, typically categorized into land, labor, and capital.

Population Growth Rate

The population growth rate is a measure of how the number of individuals in a population increases or decreases over time, usually expressed as a percentage.

Economic Development

The process by which the overall health, wellbeing, and economic capabilities of a country improve, often through targeted policies and investments.