When the "Invisible Hand" Guides Economic Activity, Prices of Products

question 292

Multiple Choice

When the "invisible hand" guides economic activity, prices of products reflect

• A) only the values that society places on those products.
• B) only the costs to society of producing those products.
• C) both the values that society places on those products and the costs to society of producing those products.
• D) none of the above; when the "invisible hand" guides economic activity, prices of products are set by the government in a manner that is thought to be "fair."

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Definitions:

Neutral Trading Rights

The principle that neutral countries should be free to trade with parties in a conflict without interference from those at war.

U.S. Exports

Goods or services sent from the United States to other countries for sale or trade.

Federal Power

The authority held by the central or national government of a federal state, distinct from that of its constituent units.

Territory Acquisition

The process or act of obtaining new lands or jurisdictions, often through conquest, purchase, annexation, or inheritance.