Which of the Following Is Necessary for the Invisible Hand

question 231

Multiple Choice

Which of the following is necessary for the invisible hand of market prices to work properly?

• A) buyers and sellers who generally tend to disregard their own self-interest
• B) democratic political procedures and highly regulated markets
• C) price controls that restrict the movement of market prices
• D) competition and property rights that are well-defined and enforced

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Definitions:

Section 1231

This is a section of the U.S. Internal Revenue Code that provides favorable tax treatment for gains and losses on the sale or exchange of certain types of property used in a trade or business.

Capital Losses

Capital losses occur when the sale of a capital asset, such as stocks or real estate, results in a loss, which can offset capital gains for tax purposes.

Carry Forward

A tax policy that allows individuals or companies to use a current year's tax losses to offset future taxable income.

Section 1231

A section of the U.S. tax code that allows for the favorable tax treatment of gains and losses on the sale or exchange of business property.