QUESTION 14 Which of the following statements is false? D The \"invisible hand\"

Question

QUESTION 14 Which of the following statements is false? D The "invisible hand" discussed by Adam Smith, explains how command economic systems work. D rechnological progress over the last 50 years has led to an decrease in international trade O Opportunity cost is defined as the money given up to buy something. D All of the above QUESTION 15 A steel company sells some steel to a bicycle company for $150. The bicycle company uses the steel to produce a bicycle, which it sells for $250. Taken together, these two transactions contribute D $150 to GDP. $250 to GDP. between $250 and $400 to GDP, depending on the profit earned by the bicycle company when it sold the bicycle. (n)-$400 to GDP e All Ans

Explanation / Answer

14.

Correct Answer:

All of the above

Explanation:

Concept of invisible hands is given by Adam Smith and it is applicable in market economy. Technology has increased the international trade. Opportunity cost is referred as the cost of second best alternative.

15.

Correct Answer:

$250 to GDP

Explanation:

GDP only includes final value of the products. Hence, the final value of bicycle, already includes the value of steel that is used to build a bicycle.

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