The "invisible hand" refers to
A)the marketplace guiding the self-interests of market participants into promoting general economic well-being.
B)the fact that social planners sometimes have to intervene,even in perfectly competitive markets,to make those markets more efficient.
C)the equality that results from market forces allocating the goods produced in the market.
D)the automatic maximization of consumer surplus in free markets.

Question

Quizplus · Accepted Answer

The "invisible hand" is a concept introduced by Adam Smith, which refers to the market forces that regulate the self-interests of market participants and guide them into promoting the general economic well-being of society. In other words, the market economy functions efficiently and productively without the need for government intervention or central planning, as each individual pursues their own self-interest, and the market competition and price mechanism work together to allocate resources and goods.

The "Invisible Hand" Refers to