According to Adam Smith, the "Invisible Hand" Refers to Which

question 32

Multiple Choice

According to Adam Smith, the "invisible hand" refers to which of the following?

• A) The "best interests of society (public interest) will occur as an outcome of the market process coordinating the self-interested interactions of buyers and sellers (private interest).
• B) Government interference is the invisible hand of inefficiency.
• C) Bribes and graft is the invisible hand of inefficiency.
• D) The "best interests of society" will occur as an outcome of careful guidance by government authorities in allocating scarce goods and services.

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Definitions:

Cash Flows

The aggregate sum of cash entering and leaving a business, critically impacting its financial fluidity.

Financing Activities

Transactions and events that affect a company's long-term liabilities and equity, including issuing debt, repaying loans, and distributing dividends, as reported in the cash flow statement.

Investing Activities

Transactions that pertain to the acquisition and disposal of long-term assets and investments not included in cash equivalents.

Cash Flow Statement

A financial document summarizing the total cash received from a company's operational activities and external financial sources, alongside all expenditures on business operations and investments over a specific timeframe.