The Idea That the Pursuit of Private Self-Interest by Consumers

question 46

Multiple Choice

The idea that the pursuit of private self-interest by consumers and firms also promotes the public interest is called

• A) roundabout production.
• B) the circular flow.
• C) opportunity cost.
• D) the invisible hand.
• E) innovation.

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Definitions:

Personal Influences

The effects that the personal characteristics, beliefs, attitudes, and actions of individuals have on their own or others' thoughts, feelings, and behaviors.

Superordinate Goals

Shared goals that override differences among people and require their cooperation.

Stereotypes

Widely held but simplified and generalized beliefs about a particular group of people or type of person.

Ingroup Bias

The tendency to favor our own group.