When Adam Smith described the invisible hand,he was talking about
A) the price system.
B) central planning.
C) opportunity cost.
D) the division of labor.
E) disguised unemployment.

Question

Quizplus · Accepted Answer

Adam Smith was referring to the price system when he described the invisible hand. He believed that when individuals pursue their own self-interest in the market, the invisible hand guides their actions towards the social good. The market mechanism, particularly the price system, helps to allocate resources more efficiently than central planning.

When Adam Smith Described the Invisible Hand,he Was Talking About