Which of the Following Is Necessary for the Invisible Hand

question 231

Multiple Choice

Which of the following is necessary for the invisible hand of market prices to work properly?

• A) buyers and sellers who generally tend to disregard their own self-interest
• B) democratic political procedures and highly regulated markets
• C) price controls that restrict the movement of market prices
• D) competition and property rights that are well-defined and enforced

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Definitions:

Extinction

In the context of psychology, it refers to the gradual diminishing of a conditioned response when the reinforcement or the association with a stimulus is removed.

Operant Conditioning

An educational method where the intensity of an action is altered by either encouraging or penalizing it.

Forgetting

The loss of information from long-term memory, often considered a normal process due to various factors like interference, decay, or retrieval failure.

Classical Conditioning

a learning process that occurs when two stimuli are repeatedly paired; a response that is initially elicited by the second stimulus is eventually elicited by the first stimulus alone.