According to the theory of the invisible hand, when there is competition, self-interested decisions advance the society interests.
<h3>What is the invisible hand theory?</h3>
Adam Smith, a Scottish philosopher and economist, popularized the metaphor of the "invisible hand" to describe the processes by which positive social and economic consequences may result from the collective self-interested acts of individuals, none of whom intend to produce such outcomes.
<h3>How is Adam Smith's invisible hand idea still applicable today?</h3>
An important economic idea that is still relevant today is the invisible hand theory. It may provide insight into the operation of free markets and consumer behavior. Although the idea is significant, it is frequently applied in ways that are inconsistent with Smith's original text or out of context.
<h3>What exactly is the "invisible hand" and why is it significant?</h3>
The term "invisible hand" describes how an individual's self-interests help society as a whole. In other words, through pursuing the profit motive, individuals are required to offer commodities at a cost that others are prepared to pay. Society gains as a result since those goods might not have been created otherwise.
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Answer:
E) none of the above
12.70% and 2.49% standard deviation
Explanation:
We multiply probability by the outcome to get the weighted amount, we add them and get the expected return.
probability outcome weighted
0.25 0.10 0.0250
0.45 0.12 0.0540
0.30 0.16 0.0480
expected return 0.1270
Now that we got the expected return at 12.7%
We now subtract the possible outcome with the expected return and square them:
(0.127-0.1)^2
(0.127-0.12)^2
(0.127-0.16)^2
Then we add them and divide by the sample which is 3
0.000622
²√ 0.000622 = 0.024944383
<u><em>Final step,</em></u> will be the square root which gives the standard deviation
of 2.49% = 0.024947
Answer:
The correct answer is option (C).
Explanation:
According to the scenario, the given data are as follows:
Base year basket price = $5,000 billion
Year 2 basket price = $5,500 billion
So, we can calculate the consumer price index by using following formula:
Consumer price index = (Year 2 basket price ÷ Base year basket price ) × 100
By putting the value, we get
Consumer price index = ( $5,500 ÷ $5,000 ) × 100
= 1.1 × 100
= $110 billion
Answer:
<u><em>Ending Inventory:</em></u> <em>21,267.70</em>
Explanation:
cost retail
beginning 12,700 20,900
purchases 113,930 158,500
markups 9,600
markdowns (7,400)
total 126,630 181,600
inventory to retail ratio: 126,630 / 181,600 = 0.6973
sales revenues 151,100
COGS: 151,100 x 0.6973 = 105,362.30
<u><em>Ending Inventory:</em></u> 126,630 - 105,362.30 = <em>21,267.70</em>
One of the most important things is called a free enterprise economy