In What Way, If Any, Does the Invisible Hand Affect

question 159

Multiple Choice

In what way, if any, does the invisible hand affect government resource allocation?

• A) It enhances government efficiency by promoting competition for resources within government.
• B) It does not help resource allocation, as there are no competitive forces within government that automatically direct resources to their best uses.
• C) It rewards government bureaucrats who are most efficient at implementing public policies.
• D) It reduces government efficiency by sending market signals that interfere with government decision making.

---

Definitions:

Apparent Authority

The appearance or assumption of authority based on the actions or statements of the principal, leading third parties to believe that a representative has authority to act.

Bound

To be legally or morally obligated; often referring to the commitments made in a contract or agreement.

Purchased

Purchased refers to the acquisition of goods or services in exchange for money or other consideration.

Ratifying Contract

The act of formally approving an agreement to make it valid and binding, often after the fact.