According to the Invisible Hand Concept,the Best Way for a Society

question 224

Multiple Choice

According to the invisible hand concept,the best way for a society to encourage the creation of jobs and the production of the products most wanted by consumers would be to:

• A)Permit government owned industries,such as telecommunications,transportation,and energy,and operate these firms as nonprofit organizations.
• B)Allow private ownership of businesses,but make use of extensive regulation to force businesses to behave in a socially desirable way.
• C)Allow entrepreneurs personal freedom to follow their own self-interest.
• D)Impose high taxes on individuals,and use the revenue to subsidize businesses to encourage them to produce the maximum rate of output.

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Definitions:

Production Targets

Specific goals set for the quantity of products to be produced within a certain time frame.

Invisible Hand

A concept introduced by Adam Smith to describe the self-regulating nature of the market, where individual self-interests unintentionally benefit the economy as a whole.

Market Failures

Circumstances where a free market's distribution of goods and services is inefficient, frequently warranting the involvement of the government.

National Economic Plan

A comprehensive strategy formulated by a government to stabilize the economy and stimulate growth.