According to the Invisible Hand Principle, Competitive Markets Generally

question 161

Multiple Choice

According to the invisible hand principle, competitive markets generally

• A) bring the self-interest of individuals into harmony with the efficient allocation of resources, even though centralized planning of economic activities is absent.
• B) bring the self-interest of individuals into harmony with the efficient allocation of resources when the behavior of individuals is directed by democratic centralized planning.
• C) require central direction; otherwise, the actions of self-interested individuals will conflict with the general interests of society.
• D) promote the economic welfare of self-interested producers at the expense of unorganized groups such as consumers and taxpayers.

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Definitions:

Great Britain

An island in the North Atlantic off the northwest coast of continental Europe, comprising of the countries of England, Scotland, and Wales, and forming the largest part of the United Kingdom.

British Islands

A term that collectively refers to the islands that make up the United Kingdom along with certain other islands, including the Isle of Man and the Channel Islands.

Tidewater Areas

Regions near the coast affected by the tide, often characterized by wetlands and estuaries, historically significant in early American settlement and agriculture.

Massachusetts Bay Colony

An early English settlement established in 1630 in present-day Massachusetts, it was a major center for Puritanism and early American colonial life.