In Markets, the Invisible Hand Allocates Resources Efficiently

question 305

Multiple Choice

In markets, the invisible hand allocates resources efficiently

• A)in all cases.
• B)when the buyers and sellers are the only interested parties.
• C)when there are positive externalities, but not when there are negative externalities.
• D)when there are negative externalities, but not when there are positive externalities.

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Definitions:

Civil Wrong

A violation of a person's rights or a failure to perform a legal duty owed to a specific individual or society, known as a tort.

Tort

A civil wrong not arising from a breach of contract. A breach of a legal duty that causes harm or injury to another.

Corporate Law

A branch of law that deals with the formation, governance, and operations of corporations and their relationship with stakeholders.

Shareholders' Meetings

Gatherings of the owners of a corporation's shares to discuss corporate governance and make important decisions.