The invisible hand works
A) in unregulated markets,but not in regulated markets.
B) in regulated markets,but not in unregulated markets.
C) in both regulated and unregulated markets.
D) in neither regulated nor unregulated markets.
E) only in the presence of government intervention.

Question

Quizplus · Accepted Answer

The invisible hand, as described by Adam Smith, refers to the self-regulating nature of the market. It suggests that when individuals pursue their own self-interest in a competitive market, they inadvertently promote the well-being of society as a whole. This mechanism operates regardless of whether the market is regulated or unregulated. However, in regulated markets, the ways in which the invisible hand operates may be altered by the regulations. Therefore, the correct choice is C.

The Invisible Hand Works