Which of the following best describes the invisible-hand concept?
A) The desires of resource suppliers and producers to further their own self-interest will automatically further the public interest.
B) The inability to substitute resources creates a conﬂict between private and public interests and calls for government intervention.
C) The market system is the best system for overcoming the scarce resources-unlimited wants problem.
D) Central direction by the government will improve resource allocation in a capitalistic economy.

Question

Quizplus · Accepted Answer

The invisible-hand concept is based on the idea that individuals acting in their own self-interest will unintentionally promote the greater good of society. The market mechanism directs resources toward the most valued uses, allowing the economy to operate efficiently without the need for central planning or government intervention. Choice A best describes this concept.

Which of the Following Best Describes the Invisible-Hand Concept