When the "Invisible Hand" Guides Economic Activity, Prices of Products

question 292

Multiple Choice

When the "invisible hand" guides economic activity, prices of products reflect

• A) only the values that society places on those products.
• B) only the costs to society of producing those products.
• C) both the values that society places on those products and the costs to society of producing those products.
• D) none of the above; when the "invisible hand" guides economic activity, prices of products are set by the government in a manner that is thought to be "fair."

Explain the relationship between cognition and behavior by identifying cognitive processes that underlie specific actions or decisions.

Analyze the influence of cognitive structures and processes on perception and judgment.

Distinguish between different problem-solving strategies including algorithms and heuristics.

Understand the role of cognitive psychology in explaining human thought, reasoning, and information processing.