According to the Invisible Hand Principle, Competitive Markets Generally

question 161

Multiple Choice

According to the invisible hand principle, competitive markets generally

• A) bring the self-interest of individuals into harmony with the efficient allocation of resources, even though centralized planning of economic activities is absent.
• B) bring the self-interest of individuals into harmony with the efficient allocation of resources when the behavior of individuals is directed by democratic centralized planning.
• C) require central direction; otherwise, the actions of self-interested individuals will conflict with the general interests of society.
• D) promote the economic welfare of self-interested producers at the expense of unorganized groups such as consumers and taxpayers.

Understand the concept and calculation of marginal probability.

Comprehend the definition and calculation of joint (intersection) and union probabilities.

Differentiate between independent and dependent events.

Calculate conditional probabilities and understand their implications.

---

Definitions:

Auditory

Related to the sense of hearing or the organs and structures thereof.

Olfactory

Pertaining to the sense of smell.

Visual

Relating to seeing or to the perception of things by the sense of sight.

Tactile

Relating to the sense of touch or the sensation caused by objects coming into contact with the skin.