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

question 241

Multiple Choice

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

• A) Ample regulation of business by the government will maximize the public's best interests.
• B) The market system works best when resources are free to move from one use to another.
• C) The problem of scarcity can best be overcome in a system of mixed capitalism.
• D) Self-interest in a market system will automatically promote the public interest as well.

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Definitions:

Times Interest Earned Ratio

A measure of a company's ability to meet its debt obligations, calculated by dividing earnings before interest and taxes by interest expense.

Loaning Money

The act of giving money to another party with the agreement that the money will be repaid, often with interest.

Debt-Equity Ratio

A measure of a company's financial leverage, calculated by dividing its total liabilities by its shareholders' equity.

Total Debt Ratio

A financial ratio that measures the proportion of a company's assets financed by its total debt.