Which of the Following Choices Best Illustrates the Concept of Adam

question 221

Multiple Choice

Which of the following choices best illustrates the concept of Adam Smith's "invisible hand"?

• A) A Vietnamese farmer grows rice; an exporter ships it to the United States, and a grocer in New York sells it to a customer.
• B) A fishery's stock of fish becomes depleted due to overfishing as boats from around the world converge.
• C) A government regulates a firm to clean up the pollutants the firm has released as part of its production process.
• D) An apartment building that provides much-needed housing is built on the site of the only playground for children in that town.

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Definitions:

Loan Period

The duration of time from the initiation to the full repayment of a loan.

Exact Simple Interest

A method of calculating interest that uses a base of 365 days per year, ensuring accuracy based on actual calendar days.

365-Day Year

A 365-day year is a calendar method used in finance that assumes all years have 365 days for the calculation of interest rates.

Exact Simple Interest

Exact simple interest is a calculation method where interest accrues on a principal sum at a constant rate over a specific time period, using a 365-day year for calculations.