According to the Invisible Hand Concept, the Best Way for a Society

question 12

Multiple Choice

According to the invisible hand concept, the best way for a society to encourage the creation of jobs and the production of the products most wanted by consumers would be to

• A) permit government-owned industries, such as telecommunications, transportation, and energy, and operate these firms as nonprofit organizations.
• B) allow private ownership of businesses, but use extensive regulations to force businesses to behave as the government wishes.
• C) allow entrepreneurs personal freedom to follow their own self-interest.
• D) impose high taxes on individuals, and use the revenue to subsidize businesses to encourage them to produce the maximum rate of output.

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Definitions:

Evidenced

Something that is made apparent or is provided as proof in support of an assertion, fact, or claim.

Collateral Contracts

Secondary contracts that supplement a primary contract, often providing for additional rights or obligations that enhance the original agreement.

Month-to-Month Lease

A rental agreement that renews each month automatically until either the landlord or tenant decides to terminate it.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the party to be charged, to prevent fraud and perjury in contractual agreements.