Adam Smith's Wealth of Nations, written in 1776, describes the market's invisible hand representing the
A) efficiency the market achieves without the interference of governments.
B) control all governments have in organising the market.
C) King of England's control over the colonies.
D) inefficiency of markets when governments do not organise them.
E) invisible command system that efficiently allocates resources.

Question

Quizplus · Accepted Answer

Adam Smith's concept of the invisible hand refers to the idea that individual self-interest in a market economy can lead to a more efficient allocation of resources without the need for government intervention. Thus, choice A is the most accurate description. Choices B, C, and D are not relevant to the concept of the invisible hand. Choice E does not accurately capture the idea of individual self-interest driving market efficiency.

Adam Smith's Wealth of Nations, Written in 1776, Describes the Market's