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:

Stockholders' Equity

The portion of the balance sheet that represents the equity interest of shareholders in the company, often referred to as shareholders' equity.

Par Value Preferred Stock

The face value of preferred shares, which helps determine the dividend payments and liquidation preference.

Book Value

The net value of an asset as recorded on the balance sheet, calculated by subtracting any related depreciation, amortization, or impairment costs from its original cost.

Common Share

A type of equity security that represents ownership in a corporation and entitles the holder to vote at shareholder meetings.