The Principle of the "Invisible Hand" Claims That

question 51

Multiple Choice

The principle of the "invisible hand" claims that:

• A)the selfish pursuits of everyone's own interest will lead to the best good for all under market competition.
• B)government must gently guide economic activity so that the best for all will be attained.
• C)government policies work like an invisible hand, steering resources to their best use.
• D)producers must quietly cooperate so that prices are not so low as to cause losses.
• E)none of the above.

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Definitions:

Rummage Sale

A sale event, often organized by a community or organization, where used goods are sold, typically to raise funds.

Current GDP

The market value of all final goods and services produced within a country in a given period, measured without adjusting for inflation.

Inventory

The sum of all goods and materials held by a company in stock, including raw materials, work-in-progress, and finished goods.

Investment Expenditures

Spending on capital goods by firms and households which will be used for future production of goods and services.