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:

Social Security Tax

A tax levied on both employers and employees to fund the Social Security program, which provides benefits for retirees, disabled persons, and survivors.

Medicare Tax

A federal tax deducted from an employee's paycheck to fund the Medicare program.

Unemployment Tax

Taxes paid by employers to fund the unemployment insurance program, providing financial assistance to unemployed workers.

Federal Income Tax

A tax levied by the U.S. government on the annual earnings of individuals, corporations, trusts, and other legal entities.