Smith's Metaphor of the ―Invisible Hand‖ Refers to Thenotion That

question 17

Multiple Choice

Smith's metaphor of the ―invisible hand‖ refers to thenotion that:

• A)greed is always good when externally motivated.
• B)behavior based on self-interest can lead to an overall benefit to society.
• C)market incentive can lead to negative side effects.
• D)markets always align self-interest with social interest.

---

Definitions:

Frequency Distribution

A table or chart that gives each piece of data in the set and the frequency, or the number of times that it appears in the data set.

Standard Deviation

A statistic that measures the dispersion or variation of a set of values, indicating how much the values differ from the mean of the set.

Z-score

A statistical measure that describes a value's relationship to the mean of a group of values, expressed in terms of standard deviations from the mean.

Average Cost

A method of inventory valuation where the cost of goods sold and ending inventory are calculated based on the weighted average of all purchases.