The "invisible hand" concept refers to the
A) guiding function of prices in a market system.
B) implicit inﬂuence that the government has on the actions of ﬁrms.
C) regulatory structure that markets must operate in.
D) underlying money ﬂows that promote the trading of goods and services.

Question

Quizplus · Accepted Answer

The "invisible hand" concept refers to how the market system operates without central planning, and how prices act as a guide for producers and consumers in determining what goods and services should be produced and consumed. This concept was first introduced by economist Adam Smith in his book "The Wealth of Nations."

The "Invisible Hand" Concept Refers to the