Asked by Bryce Folsom on May 11, 2024

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The invisible hand is

A) Perfect competition.
B) The profit motive.
C) Government direction.
D) The mixed economy.

Invisible Hand

The invisible hand is a metaphor introduced by Adam Smith to describe the unintended social benefits resulting from individual actions driven by self-interest.

Perfect Competition

A market structure characterized by a large number of small firms, homogeneous products, and the free entry and exit of firms, where no single firm can influence the market price.

Mixed Economy

An economy in which production and distribution is done partly by the private sector and partly by the government.

  • Comprehend the importance of theories posited by Adam Smith and the principle of the invisible hand.
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PK
Pragya KunwarMay 15, 2024
Final Answer :
B
Explanation :
The invisible hand refers to the self-regulating nature of the market economy, guided by the pursuit of profit by individual actors. This concept was popularized by economist Adam Smith in his book "The Wealth of Nations." Therefore, the best choice is B, the profit motive, as it directly relates to the concept of the invisible hand.