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:

Taxable Entity

A taxable entity is any legal identity or structure that is required to pay taxes to a federal, state, or local government.