Adam Smith's "Invisible Hand" Explains

question 118

Multiple Choice

Adam Smith's "invisible hand" explains

• A)why people act in their own best interests
• B)why the government intervenes to overcome failures in private markets.
• C)how people,acting out of self-interest,unintentionally promote the general good
• D)how comparative advantage and specialization promote international trade
• E)how the creation of goods and services (supply)generates its own demand by creating employment and income

Identify statements about economic systems and evaluate their accuracy.

Understand the concept of public goods and their characteristics.

Comprehend the principles of market failures, including externalities and inefficiencies.

Differentiate between economic systems (capitalism, socialism, communism) and their approaches to production and distribution.

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Definitions:

Schizophrenia

A severe mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Erratic

Describing something that is unpredictable or irregular in pattern, movement, or behavior.

Biological Factors

Elements within an organism's biology that influence its behavior, health, and development, including genetics, brain chemistry, and hormone levels.

Unpredictable Environment

A setting or situation where changes and occurrences are random or difficult to anticipate, often causing stress or anxiety.