Which of the following is necessary for the invisible hand of market prices to work properly?
A) buyers and sellers who generally tend to disregard their own self-interest
B) democratic political procedures and highly regulated markets
C) price controls that restrict the movement of market prices
D) competition and property rights that are well-defined and enforced

Question

Quizplus · Accepted Answer

The invisible hand of market prices relies on competition and well-defined property rights to allocate resources efficiently. These conditions ensure that individuals acting in their self-interest will lead to outcomes beneficial for society.

Which of the Following Is Necessary for the Invisible Hand