According to Adam Smith

question 168

Multiple Choice

According to Adam Smith

• A) government intervention in markets is not desirable because an invisible hand leads decisions made in pursuit of self-interest to unintentionally promote the social interest.
• B) politicians are well-equipped to regulate corporations and intervene in markets to improve market outcomes.
• C) when big corporations pursue their self-interest of maximum profit, they will inevitably conflict with social interest.
• D) in a market transaction buyers can either get what they want for less than they would be willing to pay or sellers can earn a profit, but both buyers and sellers can't gain simultaneously.

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Definitions:

Linear Relationship

A direct proportionality between two variables in which the change in one variable is directly proportional to the change in another, represented graphically as a straight line.

Relationship

A connection, association, or interaction between two or more variables, where changes in one variable affect the other(s).

Independent Variables

Refers to the inputs or predictors in a statistical model that are manipulated or selected by the researcher to determine their effect on the dependent variable.

COV

A measure of relative variability computed as the standard deviation divided by the mean; also known as the coefficient of variation.