The invisible hand principle indicates that competitive markets can help promote the efficient use of resources
A) only if buyers and sellers really care, personally, about economic efficiency.
B) even when each market participant cares only about their own self interest rather than about the overall efficiency of resource use.
C) even if business firms fail to produce goods efficiently.
D) if, and only if, businesses recognize their social obligation to keep costs low and use resources wisely.

Question

Quizplus · Accepted Answer

The invisible hand principle suggests that individuals pursuing their own self-interest in a competitive market can lead to efficient resource allocation, even if they are not consciously aiming for economic efficiency.

The Invisible Hand Principle Indicates That Competitive Markets Can Help