The invisible hand using Adam Smith's terminology refers to

The invisible hand using Adam Smith's terminology refers to
 a. government control of the market.
  b. market forces working through the price mechanism.
  c. the money supply that serves to keep the economy working smoothly.
  d. the role of innovation in maintaining a steady rate of growth.
  e. behind-the-scenes policy making to influence how markets allocate scarce resources.

QUESTION 2

Each firm in a cartel has an incentive to chisel because market price exceeds:
 a. marginal cost.
  b. average cost.
  c. average variable cost.
  d. average fixed cost.

QUESTION 3

Which is NOT an example of signaling high quality in a social setting
 a. wearing a business suit on a job interview
  b. leaving a big tip for the waiter after a dinner date
  c. offering an expensive engagement ring to your bride
  d. Doing messy chores before a big date

QUESTION 4

The opportunity cost of investing in a new lithotripter (a machine that pulverizes kidney stones with sound waves) is
 a. defined by the dollar cost of the equipment.
  b. the same for every health care provider.
  c. measured by the difference between the expected revenues from selling the services of the lithotripter and the invoice cost of the machine.
  d. defined by the next best use of the money invested in the equipment.
  e. impossible to calculate.

QUESTION 5

All of the following are problems associated with maintaining a cartel except that:
 a. cartels are illegal.
  b. a large amount of information is needed to coordinate a cartel.
  c. profits are not maximized by a cartel so it will evolve into a monopoly.
  d. each member of the cartel has an incentive to chisel by expanding output.

QUESTION 6

Which is NOT an example of signaling high quality in a social setting
 a. wearing a business suit on a job interview
  b. leaving a big tip for the waiter after a dinner date
  c. offering a cheap engagement ring to your bride
  d. Visiting the beauty salon before a big date