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

question 224

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 make use of extensive regulation to force businesses to behave in a socially desirable way.
• 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:

Cash Flow Stream

A series of cash inflows and outflows over a period, representing transactions or operations' financial impacts on a business.

Compounded Annually

The process by which an investment grows in value over time as interest is added to the principal amount each year, which then earns more interest.

Rate of Interest

The percentage of a loan accrued as interest to the borrower, commonly shown as an annual percent of the remaining loan balance.

Retirement Plan

A financial arrangement designed to replace employment income upon retirement, offering benefits like savings, investment, and tax advantages.