Adam Smith's Idea of the "Invisible Hand" Says That Given

question 47

Multiple Choice

Adam Smith's idea of the "invisible hand" says that given a country's resources and its initial distribution of wealth,the use of markets will

• A)insulate a nation from the effects of political instability.
• B)eliminate problems of hunger and dissatisfaction.
• C)eliminate inequalities between the rich and the poor.
• D)make people as economically well off as possible.

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Definitions:

Gross Profit

The difference between sales and the cost of goods sold, essentially measuring the efficiency of a company in managing its labor and supplies in production.

Intra-entity

Pertains to transactions or activities occurring within the same legal entity.

Equity Method

An accounting technique used by a company to record its investment in another company based on the profit or loss and changes in the investee’s equity.

Significant Influence

A level of control exerted by an investor over an investee, characterized by the power to participate in financial and operating policy decisions without having full control or majority ownership.