Smith's Utilitarian Argument Is Most Commonly Criticized for Making What

question 7

Multiple Choice

Smith's utilitarian argument is most commonly criticized for making what some call unrealistic arguments.

• A) Smith assumes that no one seller can control the price of a good.
• B) Smith assumes that the manufacturer will pay for all the resources used to produce a product.
• C) Smith assumes that humans are motivated only by a natural, self-interested desire for profit.
• D) All the above
• E) B & C

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Definitions:

Supply Curve

A visual chart depicting how the price of a product or service correlates with the amount a vendor is prepared and capable of providing to the marketplace.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, usually represented as the area above the supply curve and below the market price.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that suppliers are willing to offer for sale, holding all other factors constant.

Demand Curve

A visual chart that shows how the quantity of a product demanded by buyers varies with its price.