When the Invisible Hand Does Not Produce Optimal Outcomes for the Economy,there

question 21

Multiple Choice

When the invisible hand does not produce optimal outcomes for the economy,there is evidence of

• A)Market failure.
• B)Government failure.
• C)Macroeconomic failure.
• D)Scarcity.

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Definitions:

Shift Outward

An economic term describing the expansion of a country's production possibility frontier, indicating increased capacity to produce goods and services.

Improvement In Technology

Enhancements or advancements in technology that lead to more efficient processes, products, or services.

Debt-to-Total-Assets Ratio

The debt-to-total-assets ratio is a financial metric that measures a company's leverage by comparing total debts to total assets.

Capital Structure

The manner in which a firm’s assets are financed; that is, the right side of the balance sheet. Capital structure is normally expressed as the percentage of each type of capital used by the firm such as debt, preferred stock, and common equity.