When Adam Smith Said Economic Activity Was Directed by an "Invisible

question 508

Multiple Choice

When Adam Smith said economic activity was directed by an "invisible hand," he was referring to the fact that

• A) competitive markets motivate altruistic individuals to pursue productive activities that only serve their private interests.
• B) when economic activity is directed by competitive markets, the actions of self-interested individuals will generally serve the public interest.
• C) invisible forces will lead to economic chaos unless wise central planning directs economic activity.
• D) scarcity is largely the result of invisible forces that would be eliminated if individuals were free to pursue their own self-interests.

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Definitions:

Hardware Purchases

The act of buying physical components and devices used in computing and technological systems.

Secondary Storage

Non-volatile memory that is used to store data permanently, serving as additional storage apart from the computer's primary storage.

Primary Storage

Memory that is directly accessible by the CPU of a computer, such as RAM, used for storing data temporarily during processing.

Volatile

Referring to a type of memory that requires power to maintain the stored information; it loses its data when the system is turned off.