Question

Which one of the following statements are correct? I-The socialism system is the precursor to feudalism II- The invisible hand doctrine suggests that total economic surplus of society is maximized III- The government tax break given when buying an electric car is an example of indicative planning IV- A statement that involves priorities and value judgments is generally regarded as a normative statement

Answer 1

Answer: II, III, IV

Step-by-step explanation:

Of the options, the correct statements are:

II- The invisible hand doctrine suggests that total economic surplus of society is maximized

III- The government tax break given when buying an electric car is an example of indicative planning

IV- A statement that involves priorities and value judgments is generally regarded as a normative statement.

The invisible hand simply has to do with the unseen forces that have an impact and control the free market economy. It should also be noted that the socialism system is not the precursor to feudalism.