Author Question: A basic premise of Adam Smith's is a. human beings try to avoid acquisitive behavior. b. when ... (Read 124 times)

charchew · **on:** Jun 19, 2018

A basic premise of Adam Smith's is

a. human beings try to avoid acquisitive behavior.

b. when people are left to pursue their own economic interests, disaster looms.
c. the division of labor, though good for the firm, reduces overall efficiency.
d. we can secure what we need from others only by offering them something they need from us.

Question 2

The concept of the invisible hand means

a. each person's private pursuit of wealth will result in the most beneficial overall organization and distribution of
economic resources.
b. although it can't be seen, the hand of government controls the economy and exerts a beneficial pressure that
promotes economic welfare.
c. feudalism inevitably gives rise to capitalism.
d. externalities must be internalized