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:

Business Firm

An organization engaged in commercial, industrial, or professional activities with the purpose of generating profit.

Large Corporations

Substantial business entities with significant operational scale, usually involving multi-national operations and a large number of employees.

Jurisdiction

The legal authority granted to a court or governmental entity to make decisions and enforce laws.

Diversity Jurisdiction

Federal courts' authority to hear lawsuits involving parties from different states or countries, based on their diversity of citizenship.