The 'invisible hand' refers to the:
A)marketplace guiding the self-interests of market participants into promoting general economic wellbeing
B)marketplace as a place where government looks out for the self-interests of individual participants in the market
C)equity that results from market forces allocating the goods produced in the market
D)automatic maximisation of consumer surplus in free markets

Question

Quizplus · Accepted Answer

The 'invisible hand' refers to the idea that, in a free market system, the collective self-interests of individuals and businesses will lead to an overall efficient allocation of resources, without the need for central planning or government intervention. The marketplace, therefore, guides these self-interests towards promoting general economic welfare, an idea famously explained by Adam Smith in his book, The Wealth of Nations.

The 'Invisible Hand' Refers to The