Adam Smith's "Invisible Hand" Refers to

question 36

Multiple Choice

Adam Smith's "invisible hand" refers to

• A)the uncontrollable forces of nature that affect the economy.
• B)a successful gothic novel Smith wrote, thereby gaining the income necessary to pursue less lucrative academic speculation.
• C)the control that government exercises over the economy.
• D)the economic force that converts individual pursuit of personal profit into societal good.
• E)the fact that the basic cost of goods will always increase.

Explain the procedures for handling cash transactions and the importance of controls to prevent and detect errors or fraud.

Understand the concept and importance of the number of days' sales uncollected in managing accounts receivable.

Calculate the number of days' sales uncollected using the appropriate formula.

Recognize the purposes and components of a voucher system in the control of cash payments.

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Definitions:

Innovation

The process of translating an idea or invention into a good or service that creates value or for which customers will pay.

Minorities

Groups in society distinguished by cultural, ethnic, racial, religious, or linguistic characteristics, often having less power or fewer rights compared to the dominant group.

Majority Viewpoint

The opinion or belief that is held by the greater number of individuals within a group or society.

Dual-process Model

A theory proposing that there are two distinct systems for processing information: one intuitive and fast, and the other analytical and slower.