According to Adam Smith, the invisible hand leads to
A)higher income only for the rich.
B)a socialist society.
C)market efficiency.
D)undesirable social outcomes such as a higher crime rate.
E)more firm profits at the expense of consumers.

Question

Quizplus · Accepted Answer

According to Adam Smith, the invisible hand refers to the self-interest-driven behavior of individuals in a free market economy that leads to market efficiency, where goods and services are produced at the lowest cost and in the quantity that satisfies consumer demand. Therefore, the correct choice is C.

According to Adam Smith, the Invisible Hand Leads to