How Is the Self-Interest of the Participants in an Economy

question 143

Multiple Choice

How is the self-interest of the participants in an economy guided into promoting general economic self-interest?

• A) by the invisible hand
• B) by market power
• C) by government intervention
• D) by property rights

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Definitions:

Degree of Operating Leverage

A measure of how sensitive a company's operating income is to a change in sales, indicating the proportion of fixed costs in the business's cost structure.