In the Absence of Externalities, the "Invisible Hand" Leads a Market

question 208

Multiple Choice

In the absence of externalities, the "invisible hand" leads a market to maximize

• A)producer profit from that market.
• B)total benefit to society from that market.
• C)both equality and efficiency in that market.
• D)output of goods or services in that market.

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Definitions:

Preexisting Duty Rule

A principle in contract law stating that performing or promising to perform a duty already owed under contract does not constitute valid consideration for a new promise.

Unforeseen Difficulties

Unexpected challenges or obstacles that were not anticipated, making a task or goal harder to achieve.

Preexisting Duty

An obligation that a party is already legally bound to perform, which cannot serve as consideration for a new contract.

Foreseen Difficulty

An anticipated challenge or problem that can be predicted based on current knowledge or trends.