In What Way, If Any, Does the Invisible Hand Affect

question 159

Multiple Choice

In what way, if any, does the invisible hand affect government resource allocation?

• A) It enhances government efficiency by promoting competition for resources within government.
• B) It does not help resource allocation, as there are no competitive forces within government that automatically direct resources to their best uses.
• C) It rewards government bureaucrats who are most efficient at implementing public policies.
• D) It reduces government efficiency by sending market signals that interfere with government decision making.

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Definitions:

Exporting

The sale of goods and services to foreign markets.