According to the Invisible Hand Concept,the Best Way for the Government

question 136

Multiple Choice

According to the invisible hand concept,the best way for the government to encourage the creation of jobs and the production of the products most wanted by consumers would be to:

• A)take over the operation of all firms in major industries,such as telecommunications,transportation,and energy,and operate these firms as non-profit organizations.
• B)allow private ownership of businesses,but make use of extensive regulation to force businesses to behave in a socially desirable way.
• C)allow entrepreneurs a great deal of personal freedom to follow their own self-interest.
• D)impose high taxes on individuals,and use the revenue to subsidize businesses to encourage them to produce the maximum rate of output.

---

Definitions:

Capital-Budgeting

The process that a company undergoes to evaluate potential major projects or investments, such as new machinery or expansion plans.

Risk-Free Rate

The expected yield from an investment that carries no risk of losing money, often shown through the interest rates of government securities.

Historical Data

Past information and records about an entity or market's performance, which are used for research, analysis, and planning.

Betas

A measure of the volatility, or systematic risk, of a security or portfolio in comparison to the market as a whole; it indicates how much the asset's price is expected to move relative to market movements.