The Invisible Hand Refers to the

question 4

Multiple Choice

The invisible hand refers to the

• A) fact that the U.S. tax system redistributes income from rich to poor.
• B) notion that, under competition, decisions motivated by self-interest promote the social interest.
• C) tendency of monopolistic sellers to raise prices above competitive levels.
• D) fact that government controls the functioning of the market system.

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Definitions:

Correspondent Inference

The process of drawing inferences about a person's disposition, traits, or personality based on observed behavior.

External Factor

Elements outside of an individual's control that influence their behavior, decisions, or outcomes.

Social Role

The part an individual plays in a given social context, characterized by expected behaviors, responsibilities, and norms attributed to their position.

Correspondent Inference

A theory in social psychology that describes the conditions under which we infer the disposition or personality traits of another person based on observed behavior.