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Gerard wants to get some land cleared in Texas. With the help of a consulting agency, he hires Carlos, an independent contractor. Carlos procures dynamite from a legitimate dealer to be used in clearing the land. However, the explosion of dynamite causes cracks to appear in the outer walls of a nearby house. Who is liable to the owner of the damaged house?
Mixed Economy
A system where both private enterprise and government intervention coexist in the economic sphere, facilitating a balance between free market principles and social welfare.
Invisible Hand
A term coined by Adam Smith to describe the unintended social benefits resulting from individual actions in a free market.
Price Mechanism
The process by which the forces of supply and demand determine the prices of goods and services in a market economy.
Equity
The value of ownership interest in a company, typically represented by shares of stock.
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