The "invisible hand" refers to
A)how central planners made economic decisions.
B)how the decisions of households and firms lead to desirable market outcomes.
C)the control that large firms have over the economy.
D)government regulations without which the economy would be less efficient.

Question

Quizplus · Accepted Answer

The "invisible hand" is a term coined by Adam Smith, referring to the self-regulating nature of the marketplace where individual pursuits of self-interest unintentionally benefit society as a whole, leading to desirable market outcomes without the need for central planning.

The "Invisible Hand" Refers to