When the "Invisible Hand" Guides Economic Activity, Prices of Products

question 292

Multiple Choice

When the "invisible hand" guides economic activity, prices of products reflect

• A) only the values that society places on those products.
• B) only the costs to society of producing those products.
• C) both the values that society places on those products and the costs to society of producing those products.
• D) none of the above; when the "invisible hand" guides economic activity, prices of products are set by the government in a manner that is thought to be "fair."

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Definitions:

Developing Baby

Refers to the growth and development of a fetus inside the mother's womb.

Alcoholic Drinks

Beverages that contain ethanol, a type of alcohol produced by fermentation of grains, fruits, or other sources of sugar.

Pregnant

The state of carrying a developing embryo or fetus within the female body.

Fertility

The natural capability to produce offspring, a significant factor in reproduction among humans, animals, and plants.