When Either the Costs of Production or the Benefits of Consumption

Adam Smith believed that the individual pursuit of self-interest: A)was a basic human instinct that must be curbed in order for society to advance. B)always worked to undermine social benefits. C)always worked to advance social benefits. D)sometimes worked to advance social benefits.

According to the textbook,individual incentives have led to: A)the optimal number of stock market analysts because it is a competitive market with no entry barriers. B)too many stock market analysts because market analysis does not produce social benefits. C)too many stock market analysts because the individual incentive to forecast faster exceeds the social benefit of a faster forecast. D)too few stock market analysts because the efficient market hypothesis predicts that no analyst will do better than random chance in the long run.