According to the invisible hand principle, competitive markets generally
A) bring the self-interest of individuals into harmony with the efficient allocation of resources, even though centralized planning of economic activities is absent.
B) bring the self-interest of individuals into harmony with the efficient allocation of resources when the behavior of individuals is directed by democratic centralized planning.
C) require central direction; otherwise, the actions of self-interested individuals will conflict with the general interests of society.
D) promote the economic welfare of self-interested producers at the expense of unorganized groups such as consumers and taxpayers.

Question

Quizplus · Accepted Answer

The invisible hand principle suggests that in competitive markets, individuals pursuing their own self-interest can lead to an efficient allocation of resources, without the need for centralized planning.

According to the Invisible Hand Principle, Competitive Markets Generally