The Idea That the Desires of Resource Suppliers and fiRms

question 170

Multiple Choice

The idea that the desires of resource suppliers and firms to further their own self-interest will automatically further the public interest is known as

• A) consumer sovereignty.
• B) the invisible hand.
• C) derived demand.
• D) creative destruction.

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Definitions:

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, according to the rules of double-entry accounting.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet.

Credit

An arrangement whereby goods, services, or money is received in exchange for a promise to pay back a definite sum of money at a future date.

Supplies

Items used in the operations of a business, often consumable, such as office supplies or factory supplies, not directly part of the finished product.