The "Invisible Hand" Refers to the Notion That

question 27

Multiple Choice

The "invisible hand" refers to the notion that

• A) competitive markets send resources to their highest valued uses.
• B) government intervention is necessary to ensure efficiency.
• C) marginal benefit decreases as more is consumed.
• D) marginal cost increases as more is produced.
• E) no matter what allocation method is used, the resulting production is efficient.

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Definitions:

Real World

Actual, practical conditions and circumstances as opposed to theoretical or imagined scenarios.

Illusion of Control

The false belief that one has influence over outcomes that they actually have no control over.

Ethical Decision

A choice made based on moral principles and values affecting the well-being of others or oneself.

Us vs. Them

A mentality or perspective that divides groups into insiders and outsiders, often leading to social or interpersonal conflict.