Asked by Natty SNatty on Jul 21, 2024
Verified
Adam Smith's term "the invisible hand" refers to:
A) the hidden role of government in setting regulations that govern trading in markets.
B) the most capable entrepreneurs in the economy.
C) market forces.
D) the unseen work of the financial markets that facilitates trade.
E) the role of technological change and random events in the economy.
Invisible Hand
A metaphor for the self-regulating nature of the marketplace that guides individuals to unintentionally benefit society through the pursuit of their own interests.
Adam Smith
An 18th-century Scottish economist and philosopher, best known for his works on the principles of free market economics.
- Comprehend the role of market forces, represented by Adam Smith's "invisible hand", in allocating resources efficiently.
Verified Answer
SC
Stacy CorrietteJul 25, 2024
Final Answer :
C
Explanation :
The term "the invisible hand" refers to the concept that market forces, such as supply and demand, guide the economy without needing any centralized control or direction from individuals or entities.
Learning Objectives
- Comprehend the role of market forces, represented by Adam Smith's "invisible hand", in allocating resources efficiently.
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