6. The idea that firms and resource suppliers in seeking to further their own self-interests in a competitive market economy also simultaneously promotes the public or social interest is a description of:
A. The guiding function of prices
B. Capital accumulation
C. The “invisible hand”
D. “Dollar votes”

Question

6.    The idea that firms and resource suppliers in seeking to further their own self-interests in a competitive market economy also simultaneously promotes the public or social interest is a description of:
A.    The guiding function of prices
B.    Capital accumulation
C.    The “invisible hand”
D.    “Dollar votes”

BlackTom AI · Accepted Answer

In this question, we are asked to identify which concept describes how firms and resource suppliers pursuing their own self-interests in a competitive market can simultaneously promote the public or social interest.
Option A: 'The guiding function of prices' refers to prices signaling to buyers and sellers what to do in a market, coordinating decisions. While prices play a crucial role in allocation, this description focuses on price signals rather than the broader idea that self-interest leads to social good; it is not the classic framing of the statement in question.
Option B: 'Capital accumulation' denotes the process of reinvestment and growth of wealth within an economy. This is about the buildup of capital, not about the alignment of individual self-interest with social outcomes in a market mechanism.
Option C: 'The invisible hand' is the famous metaphor introduced by Adam Smith describing how individuals pursuing their own gain can inadvertently promote the overall social welfare through the price mechanism and voluntary exchanges in a competitive market. This directly matches the description given in the question.
Option D: 'Dollar votes' refers to consumer choices in markets as a way to allocate resources, emphasizing how spending patterns influence production. While related to market dynamics and can influence social outcomes, the phrasing in the question best aligns with the broader concept of the invisible hand rather than the more specific idea of dollar voting.
Therefore, option C is the correct descriptor of the idea that self-interested actions in a competitive market can promote public or social interest, encapsulated by the invisible hand concept.

ECNM1116.32925.202530 Practice Quiz 2 The Market System and the Circular Flow

查看解析

登录即可查看完整答案

类似问题

Technological advancements, such as the personal computer and medical discoveries, are primarily driven by the profit motive. However, such advancements eventually promote the public or social interest as though they are guided by Blank ______. BlackTom题目解析

The "invisible hand" guides firms and resource suppliers to promote Blank ______ even as they seek to further their own interests. BlackTom题目解析

The "invisible hand" refers to

The "invisible hand" refers to

Adam Smith argues in the Wealth of Nations that an economy will produce more goods and services if

Adam Smith argues in the Wealth of Nations that an economy will produce more goods and services if

Choose the best answer to complete the sentence according to the information in the lecture. 19. The ‘invisible hand’ refers to the:

Adam Smith's “invisible hand” concept describes how corporate business reaches into the pockets of consumers like an “invisible hand.”

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单