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.

Question

Quizplus · Accepted Answer

According to the invisible hand concept, the best way for a society to encourage the creation of jobs and the production of products most wanted by consumers is to allow entrepreneurs personal freedom to follow their own self-interest. In a free market, entrepreneurs are motivated to produce goods and services that people are willing to pay for, which creates jobs and generates economic growth. Government ownership, heavy regulation, and high taxes can all create disincentives for entrepreneurs to invest and innovate, which can lead to a decrease in job creation and economic activity. Therefore, the option that allows entrepreneurs personal freedom to pursue their own self-interest is the best way to encourage job creation and production of the products that consumers want.

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