Which Statement Best Summarizes the Invisible Hand Theorem

question 56

Multiple Choice

Which statement best summarizes the invisible hand theorem?

• A) Government policies direct people's selfish desires (tempered by social and economic forces) to the benefit of society.
• B) Cultural norms direct people's selfish desires (tempered by political and economic forces) to the common good.
• C) Markets direct people's selfish desires (tempered by political and social forces) to the common good.
• D) Social, political, and economic forces act against people's selfish desires to promote the common good.

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Definitions:

Tariffs And Quotas

Policies and restrictions that countries use to control the amount of goods coming into and going out of the country to protect domestic industries from foreign competition.

Lesser Of Two Evils

A principle that suggests choosing the option that is considered less harmful or less undesirable among two poor choices.

Foreign Imports

Products or services imported from other countries for the purpose of being sold.

Trade Deficit

A scenario in which a country spends more on importing goods than it makes from exporting them, creating a trade imbalance.