The "invisible hand" works to promote general well-being in the economy primarily through
A)government intervention.
B)the political process.
C)people's pursuit of self-interest.
D)altruism.

Question

Quizplus · Accepted Answer

The "invisible hand" refers to the idea that the market will naturally regulate itself through people's pursuit of their own self-interest. This means that producers will seek to produce goods and services that consumers want, and consumers will choose to purchase goods and services that provide them with the most utility or satisfaction. As a result, resources will be allocated efficiently, prices will be determined by supply and demand, and economic growth and prosperity will result. This process does not require government intervention or altruistic behavior, but rather operates through the decentralized decisions and interactions of millions of individuals in the marketplace.

The "Invisible Hand" Works to Promote General Well-Being in the Economy