The "invisible hand" directs economic activity through
A)advertising.
B)prices.
C)central planning.
D)government regulations.

Question

Quizplus · Accepted Answer

The "invisible hand" is a concept in economics that suggests that the market forces of supply and demand, along with competition, will naturally guide economic activity in a way that is beneficial for society as a whole. Prices act as signals to both producers and consumers, indicating what goods and services are in demand and how much they are worth. As a result, businesses will produce goods and services that are in demand and consumers will purchase them at a fair price. This process happens naturally without the need for central planning or government regulations, which is why prices are the most accurate choice.

The "Invisible Hand" Directs Economic Activity Through