The "Invisible Hand" Concept Suggests That

question 9

Multiple Choice

The "invisible hand" concept suggests that:

• A)market failures imply the need for a national economic plan.
• B)big businesses are inherently more efficient than small businesses.
• C)the competitiveness of a capitalistic market economy invariably diminishes over time.
• D)given competition, private and public interests will tend to coincide.

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Definitions:

Clothing Tax

A specific tax imposed on the sale or purchase of clothing, which can vary by jurisdiction.

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount subject to tax.

Federal Income Tax

Tax levied by the national government on the annual income of individuals, corporations, trusts, and other legal entities.

Income Distribution

How a nation's total GDP is distributed amongst its population, often used to analyze economic inequality.