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 nonsubstitutability of 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 refers to the idea that the pursuit of self-interest by resource suppliers and producers in a competitive market will naturally lead to the benefit of society as a whole, without the need for government intervention. This is because in a free market, individuals will seek to maximize their own profits by providing goods and services that are valued by consumers, leading to efficient allocation of resources and increased overall economic welfare.

Which of the Following Best Describes the Invisible-Hand Concept