Which of the Following Statements Is True

question 38

Multiple Choice

Which of the following statements is true?

• A) The doctrine of laissez-faire advocates an economic system with extensive government intervention and little individual decision-making.
• B) In capitalism income is distributed on the basis of need.
• C) Adam Smith was the father of socialism.
• D) Most real-world economies are mixed economic systems.
• E) The "invisible hand" refers to government economic control.

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Definitions:

Marginal Revenue Product

The additional revenue a firm earns by employing one more unit of input, like labor or capital, in the production process.

Wage Rate

The amount of compensation a worker receives for performing a service, typically measured per hour or unit of work.

Employment

The state of having a paid job or being engaged in a productive activity.

Marginal Wage Cost

The additional cost incurred by an employer for hiring one more unit of labor.