--%>

Millions of economic resources tend to get arranged logicall

What explains why millions of economic resources tend to get arranged logically and productively rather than haphazard and unproductively?

E

Expert

Verified

Through the ownership of private property, resource owners will choose to use their resources in a manner that will maximize benefits to themselves (the invisible hand). This will result in the resources being utilized in the way that will best serve human goals (allocative fficiency).

   Related Questions in Business Economics

  • Q : Rivalry for various types of resources

    Intermediaries ultimately prosper only when they give a service of decreasing: (1) demand for a good (2) prices paid to manufacturers of a good. (3) transaction costs. (4) rivalry for various types of resources. (5) cut-throat competition into markets

  • Q : Depreciation of the euro change the

    If the European euro declines in value (depreciates) in the foreign exchange market, would it be easier or harder for the French to sell their wine in the United States?  Suppose you were planning a trip to Paris.  How would the depreciation of the euro chan

  • Q : External factors which influencing the

    Write down the external factors which influencing the capital structure?

  • Q : Wealth of Nations academic

    By the perspective of nowadays academic standards, Adam Smith must have more evidently acknowledged that several the analyses and insights for that he took credit within his Wealth of Nations had really been gleaned from the writings

  • Q : How market system promotes

    How market system promotes technological improvements?

  • Q : Nation’s production possibilities curve

    Suppose that, based on a nation’s production possibilities curve, for 10,000 pizzas domestically an economy must sacrifice to get the one additional industrial robot it desires, but can get that robot from another country in exchange for 9,000 pizzas. To the fol

  • Q : How is productivity of labor based

    In Wealth of Nations by Adam Smith, opined that the productivity of labor based primarily on: (w) workers’ education. (x) divisions of labor. (y) technologically advanced machines. (z) suitable wage rates.

    Q : Describe two kinds of efficiency Full

    Describe two kinds of efficiency Full production imply?

  • Q : What do you mean by Supply What do you

    What do you mean by Supply?

  • Q : Elucidate state expenditures and

    Elucidate state expenditures and receipts for all states in 1998?