Question

QUESTION 1 Resource development is concerned with finding the best way to utlize the fxed amount of resources a society has available. O True O False QUESTION 2 The "invisible hand" in Adam Smith's theory turns self-directed gain into social and economic benefits for all. O True ○ False QUESTION 3 Most communist countries today are suffering from severe economic problems O True O False QUESTION 4 The point of intersection between the supply and demand curves is called the stress point O True O False

Answer 1

1. False

Resource development is the study of how to increase resources and to create the conditions that will make better use of those resources.

2. True

Invisible hand describes Adam smith’s belief that individuals seeking their economic self-interest actually benefit society more than they would if they tried to benefit society directly.

3. True

The biggest disadvantage of communist countries is that they eliminate the essence of the free market. Everything is done by the Government. They do not value about what the people/citizen want.

4. True

The point of intersection between the supply and demand curves is called the stress point.