A Basic Premise of Adam Smith's Invisible Hand Argument Is

question 3

Multiple Choice

A basic premise of Adam Smith's invisible hand argument is

• A)human beings try to avoid acquisitive behavior.
• B)when people are left to pursue their own economic interests,disaster looms.
• C)the division of labor,though good for the firm,reduces overall efficiency.
• D)We often get what we want from others by offering something they need from us.

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Definitions:

Marginal Cost

The cost added by producing one additional unit of a product or service.

Marginal Analysis

An examination of the additional benefits of an activity compared to the additional costs incurred by that same activity.

Additional Costs

Expenses that are not initially planned or anticipated, which can arise during the course of a project or as part of an operation.

Economic Models

Simplified representations of complex economic processes used to predict future economic activity.