Which of the Following Is a Major Implication of the Invisible

question 321

Multiple Choice

Which of the following is a major implication of the invisible hand concept?

• A) When directed by competitive market prices, the actions of self-interested individuals will tend to promote overall economic prosperity.
• B) Prosperity cannot be achieved unless the selfish nature of people can be changed.
• C) Competition is harmful to the health of an economy because it results in wasteful duplication.
• D) Government-operated firms tend to have higher efficiency and lower costs than private sector firms.

Recognize the factors that can shift the PPC inward or outward, signifying changes in an economy's potential output.

Identify the opportunity costs associated with various production choices and their relevance to economic decision-making.

Apply the principles of comparative advantage and specialization to analyze potential gains from trade.

Grasp the role of technological advancements and resource allocation in influencing an economy's production capabilities.

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Definitions:

Long-Term Liabilities

financial obligations of a company that are due more than one year in the future, including bonds payable, long-term lease obligations, and pension liabilities.

Service Department Charges

Expenses allocated to a company's operational departments that provide support or services to other internal departments rather than directly to customers.

Operating Expenses

These are costs associated with the day-to-day operations of a business, excluding cost of goods sold, and may include rent, utilities, and salaries.

Departmental Expenses

Costs that are directly incurred by a specific department within an organization.