Which of the following best summarizes the essence of the Invisible Hand Theorem?
A) Competitive markets guarantee that any shortages or surpluses existing in an economy will be quickly eliminated.
B) Of all the possible economic systems,competitive markets are the most philosophically compatible with democracy and freedom.
C) Within competitive markets,people who selfishly pursue their own interests end up achieving a socially desirable outcome.
D) The social gain created by competitive markets is second only to what a hypothetical benevolent dictator could achieve.
Correct Answer:
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Q47: The following questions refer to the accompanying
Q48: The accompanying diagram shows an Edgeworth box
Q49: Price Ceiling
The following questions refer to the
Q50: According to the Invisible Hand Theorem,when competitive
Q51: Price Ceiling
The following questions refer to the
Q53: Price Ceiling
The following questions refer to the
Q54: The following questions refer to the accompanying
Q55: To fully analyze the effects of a
Q56: The accompanying diagram shows an Edgeworth box
Q57: The accompanying diagram shows an Edgeworth box
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