According to Adam Smith's Invisible Hand Principle, Productive Actions That

question 84

Multiple Choice

According to Adam Smith's invisible hand principle, productive actions that promote the general welfare of society will be undertaken when

• A) political representatives are elected democratically.
• B) competitive markets direct the actions of self-interested individuals.
• C) the selfish instincts of individuals are controlled.
• D) workers are able to organize and develop strong unions.

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Definitions:

Main-Purpose Rule

A principle in suretyship law that a guarantor's promise to pay another's debt is not considered a secondary promise requiring a written agreement if the guarantor's main purpose benefits them.

Parol Evidence Rule

A legal rule in contract law that prevents the admission of external evidence intended to alter or contradict the terms of a written agreement.

Merger Clause

A clause in a written agreement within the statute of frauds which states that the written agreement accurately reflects the final, complete version of the agreement.

Parol Evidence Rule

A legal doctrine stating that oral or extrinsic evidence cannot be used to contradict, vary, or add to the terms of a written contract.