Which of the following is a major implication of the invisible hand concept?
A) When directed by competitive market prices, the actions of self-interested individuals will tend to promote overall economic prosperity.
B) Prosperity cannot be achieved unless the selfish nature of people can be changed.
C) Competition is harmful to the health of an economy because it results in wasteful duplication.
D) Government-operated firms tend to have higher efficiency and lower costs than private sector firms.

Question

Quizplus · Accepted Answer

The invisible hand concept, introduced by Adam Smith, suggests that individuals pursuing their own self-interest in a competitive market environment can lead to positive outcomes for the economy as a whole, as if guided by an "invisible hand."

Which of the Following Is a Major Implication of the Invisible