The 'invisible hand':
A)is the name of an old radio program
B)is a concept used by Adam Smith to describe the virtues of free markets
C)is a concept used by J.M.Keynes to describe the role of government in guiding the allocation of resources in the economy
D)always rewards individuals for using the wellbeing of society as the basis for economic decision making

Question

Quizplus · Accepted Answer

The 'invisible hand' is a concept used by Adam Smith in his book 'The Wealth of Nations' to describe the way in which free markets, through the self-interested actions of individuals, can lead to an efficient allocation of resources and overall economic growth without the need for government intervention. Option A is incorrect as the 'invisible hand' is not the name of an old radio program. Option C is incorrect, as J.M.Keynes believed in government intervention in the economy to stabilize economic fluctuations. Option D is incorrect, as individuals may prioritize their own self-interest over the well-being of society when making economic decisions.

The 'Invisible Hand