"He [The Producer] Intends Only His Gain, and He Is

question 303

Multiple Choice

"He [the producer] intends only his gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention." What is the "invisible hand" referred to in this statement?

• A) the elasticity of the market demand curve
• B) the power of government when decisions are made democratically
• C) the guidelines and regulations set for his industry by the government
• D) the incentive structure accompanying market prices

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Definitions:

Duress

The act of compelling someone to act against their will by use of threats, force, or coercion.

Undue Influence

A legal concept where an individual is taken advantage of by someone else with a dominant position, thereby being coerced or manipulated into making a legal decision not in their best interest.

Embezzlement

The act of dishonestly withholding assets for the purpose of conversion (theft) of such assets by one or more individuals to whom these assets have been entrusted, typically to be held or used for other purposes.

Assign

The act of transferring rights or responsibilities from one party to another, often seen in contracts, leases, and other legal agreements.