According to the Theory of the Invisible Hand, If Buyers

question 79

Multiple Choice

According to the theory of the invisible hand, if buyers and sellers are free to pursue their own self-interest, the result often will be:

• A)an incomplete allocation of resources.
• B)the exploitation of productive resources.
• C)an equitable allocation of resources.
• D)an efficient allocation of resources.

Analyze the relationship between consumer income changes and the demand for goods.

Understand the impact of expectations on supply behavior.

Identify the roles of transaction costs and how they affect market exchanges.

Recognize the conditions that lead to market disequilibrium and how markets adjust to changes.

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Definitions:

E-contracts

Legal agreements formed and signed digitally, using electronic means like email or web-based contract management platforms.

Legally Valid

Meeting all required legal formalities and conditions, thereby enforceable in a court of law.

Unilateral Agreement

A contract where only one party makes a promise to perform without receiving a reciprocal promise from the other party.

Bilateral Agreement

A bilateral agreement is a legally binding contract between two parties, countries, or entities where each agrees to fulfill certain obligations to the benefit of the other.