The interaction of private companies trying to make the greatest profit and customers trying to get the best deal is called
A) competition
B) blind faith
C) the invisible hand
D) the zero sum game
Blind faith means belief without true understanding so I'm pretty sure it's not that . And I don't think it is competition either so it's either C or D .....
These sites should help you decide.
http://dictionary.reference.com/browse/competition
http://www.investorwords.com/2633/invisible_hand.html
http://www.investopedia.com/terms/z/zero-sumgame.asp#axzz1dEKBkIzQ
I've done research Im just not sure which one would be the best answer I'm really confused
It could be either competition or invisible hand.
The correct answer is A) competition.
To arrive at this answer, let's break down the options:
A) Competition: This option refers to the interaction between private companies aiming to maximize their profits and customers seeking the best deals. In a competitive market, businesses strive to outperform their rivals by offering better products, services, or prices. Customers, in turn, compare their available options to get the best value for their money. This dynamic drives innovation, efficiency, and consumer welfare.
B) Blind faith: As you correctly noted, blind faith refers to belief without true understanding. This does not accurately describe the interaction between private companies and customers in terms of profit and value.
C) The invisible hand: The concept of the invisible hand, coined by economist Adam Smith, describes the way an economy self-regulates through the pursuit of individual self-interest. While the invisible hand plays a role in the functioning of free markets, it is not the specific term used to describe the interaction between companies and customers in the given context.
D) The zero-sum game: This term indicates a situation where one participant's gain is directly offset by another participant's loss. However, the interaction between private companies and customers in terms of profit and value is not inherently a zero-sum game. Both sides can benefit from mutually favorable exchanges.
Considering the above, the correct answer is A) competition.