"He [The Producer] Intends Only His Gain, and He Is

question 303

Multiple Choice

"He [the producer] intends only his gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention." What is the "invisible hand" referred to in this statement?

• A) the elasticity of the market demand curve
• B) the power of government when decisions are made democratically
• C) the guidelines and regulations set for his industry by the government
• D) the incentive structure accompanying market prices

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Definitions:

Reactivity

The tendency of a substance to undergo chemical reaction, either by itself or with other materials, and to release energy.

Compounds

Compounds are chemical substances made up of two or more different chemical elements, bonded together in a fixed proportion by chemical bonds.

Transition State

A high-energy, intermediate state of the reactants during a chemical reaction that leads to the formation of products.

Solvolysis

The chemical process of breaking bonds in a compound by reaction with a solvent.