Which of the Following Best Describes the "Invisible Hand" Concept

question 11

Multiple Choice

Which of the following best describes the "invisible hand" concept?

• A)The desires of resource suppliers and producers to further their own self-interest will automatically further the public interest.
• B)The non substitutability of resources gives rise to a conflict between private and public interests and the need for government intervention.
• C)Mixed capitalism is the best system for overcoming the scarce resources-unlimited wants problem.
• D)Central direction by the government will improve resource allocation in a capitalistic economy.

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Definitions:

Validity

The extent to which a test measures what it claims to measure.

Reliability

The consistency and stability of a measurement over time.

Laboratory Observation

A research method where subjects are observed in a controlled environment to ensure accuracy and control over variables.

Artificial Setting

An environment created or controlled by researchers to simulate conditions for experiments, often differing significantly from natural or real-world settings.