The "Invisible Hand" Concept Suggests That

question 36

Multiple Choice

The "invisible hand" concept suggests that:

• A)changes in product demands are only randomly reflected in changes in the demands for resources.
• B)profit maximization is inconsistent with an efficient allocation of resources.
• C)government action is necessary to correct for market failures.
• D)when firms maximize their profits, society's domestic output will also be maximized.