Which Best Describes the "Invisible Hand" Concept

question 123

Multiple Choice

Which best describes the "invisible hand" concept?

• A) Highly detailed central direction of an economy will maximize the public's best interests.
• B) The market system works best when resources are highly substitutable.
• C) The problem of scarcity can best be overcome in a system of mixed capitalism.
• D) The desires of producers and resource suppliers to further their own self-interest will tend to promote the social interest.

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Definitions:

Total Taxes

The cumulative amount of taxes owed by an individual or corporation to the government, including federal, state, and local taxes.

Taxable Income

The amount of income that is used to calculate an individual's or a company's income tax due.

Personal Income Tax

A tax levied on individuals or entities based on their income or profit earned.

Taxable Income

The portion of an individual's or corporation's income upon which taxes are assessed, after allowances for deductions and exemptions.