According to Adam Smith's invisible hand
A)markets need the government to intervene.
B)forces are constantly pushing markets out of equilibrium
C)people and firms coordinate their activities, resulting in equilibrium in the market.
D)there is an invisible glove that restricts what markets can do.

Question

Quizplus · Accepted Answer

According to Adam Smith's invisible hand, people and firms coordinate their activities, resulting in equilibrium in the market. This means that the market does not require government intervention, but rather self-regulates through the actions of individuals pursuing their own self-interest. The concept of the invisible glove restricting market behavior is not a part of Smith's theory. While forces may be constantly pushing markets out of equilibrium, Smith believed that the invisible hand would ultimately guide the market back to equilibrium.

According to Adam Smith's Invisible Hand