According to Adam Smith

question 173

Multiple Choice

According to Adam Smith

• A)government intervention in markets is not desirable because an invisible hand leads decisions made in pursuit of self-interest to unintentionally promote the social interest.
• B)in a market transaction buyers can either get what they want for less than they would be willing to pay or sellers can make a profit,but both buyers and sellers can't gain simultaneously.
• C)politicians are well-equipped to regulate corporations and intervene in markets to improve market outcomes.
• D)when big corporations pursue their self-interest of maximum profit,they will inevitably conflict with social interest.
• E)the self-interest and the social interest never conflict.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Floating-Rate Bonds

Debt securities where the interest payments fluctuate with market interest rates rather than being fixed, potentially offering less predictable returns.

E-Commerce

The buying and selling of goods or services using the internet, and the transfer of money and data to execute these transactions.