Title: QUIZ: Adam Smith’s Invisible Hand: The Role of Self-Interest and Competition in a Market Economy
Course: Kelly's Copy-Export Course > Section: Adam Smith’s Invisible Hand: The Role of Self-Interest and Competition in a Market Economy

Q: In a market economy, who owns most of the resources and makes decisions about how they are used?
- Government
- Individuals
- Corporations
- Non-profit organizations
A: Individuals

Q: What market force is the “motivator” of economic activity?
- Self-interest
- Competition
- Government
- Authority figures
A: Self-interest

Q: Self-interest benefits society by
- creating shortages.
- allowing the government to control all economic activities.
- motivating people to work and produce goods and services.
- encouraging people to save money rather than spend it.
A: motivating people to work and produce goods and services.

Q: Competition in a market economy
- creates monopolies.
- regulates economic activity.
- is irrelevant in most markets.
- is only important for large businesses.
A: regulates economic activity.

Q: What does the "invisible hand" do in a market economy?
- Increases government intervention
- Reduces competition among firms
- Controls inflation rates
- Guides resources to their most valued use
A: Guides resources to their most valued use

Q: Why do some argue that a market economy requires little government regulation?
- People are naturally honest and have good intentions.
- Corruption doesn’t exist in a market economy.
- Businesses voluntarily cooperate with one another in a market economy.
- Self-interest is held in-check by competition.
A: Self-interest is held in-check by competition.