How Does The Invisible Hand Guide The Market To Equilibrium? The invisible hand is a concept that – even without any observable intervention – free markets will determine an equilibrium in the supply and demand for goods. The invisible hand means that by following their self-interest – consumers and firms can create an efficient allocation
How Did The Civil War Change America Economically? It improved commercial opportunities, the construction of towns along both lines, a quicker route to markets for farm products, and other economic and industrial changes. During the war, Congress also passed several major financial bills that forever altered the American monetary system. How did the American economy
Which Of The Following Best Describes The Labor Directly Contributes To Production? Which best describes what labor directly contributes to production? Human effort and ideas drive production. Which is a question that must be answered before production can take place? How is production to be organized? What activities is most essential to the game of
What Does The Monkey Experiment Teach Us About Finance? It started in 1973 when Princeton University professor Burton Malkiel claimed in his bestselling book, A Random Walk Down Wall Street, that “A blindfolded monkey throwing darts at a newspaper’s financial pages could select a portfolio that would do just as well as one carefully selected
What Is The Ideal Economy For Alexander Hamilton? Alexander Hamilton: How strong should our national government be? We should have a strong national government that unties the states and keeps order among the people. Alexander Hamilton: What is the ideal economy? The ideal economy is based on business, manufacturing, and trade. Which political party would
How Do You Calculate Socially Optimal Quantity? The MSC curve is given by MSC=Q+2 → Set the MSC equal to the marginal so- cial benefit (in this case the MSB is the market demand curve) to find the so- cially optimal amount of the good. 30-Q=Q+2 → Q =14 is the socially optimal amount of
When You Must Give Something Up In Order To Get Something Else It Is Called? Opportunity cost refers to what you have to give up to buy what you want in terms of other goods or services. When economists use the word “cost,” we usually mean opportunity cost. When you must give something up in
What Does The Saying There Is No Such Thing As A Free Lunch Tinstaafl Mean? Key Takeaways. “There ain’t no such thing as a free lunch” (TANSTAAFL) is a phrase that describes the cost of decision-making and consumption. TANSTAAFL suggests that things that appear to be free will always have some hidden or implicit cost
Which Individual Is A Producer A Host Who Seats? Definition: A producer is someone who creates and supplies goods or services. Producers combine labor and capital—called factor inputs—to create—that is, to output—something else. Business firms are the main examples of producers and are usually what economists have in mind when talking about producers. What individual
Who Decides What To Produce In A Market Economy? In a market economy, the producer gets to decide what to produce, how much to produce, what to charge customers for those goods, and what to pay employees. These decisions in a free-market economy are influenced by the pressures of competition, supply, and demand. Who decides