The "invisible hand" described by Adam Smith refers to the
A)allocative role of markets and market forces
B)importance of government intervention and central planning
C)actions of successful entrepreneurs in directing the economy
D)role of monopolized industries in leading the nation
E)value of religious belief in creating an ideal economy

Question

Quizplus · Accepted Answer

The "invisible hand" is a metaphor used by Adam Smith to describe the way in which market forces and competition lead to the allocation of resources in a way that benefits society as a whole, without the need for deliberate central planning or government intervention. Smith argued that individuals pursuing their own self-interest in a competitive market would inadvertently work towards the greater good, as prices and quantities adjust to match supply and demand.

The "Invisible Hand" Described by Adam Smith Refers to the