Which is the most correct statement about the invisible hand?
A)The invisible hand always ensures both equity and efficiency.
B)The invisible hand is more effective at ensuring equity than it is at ensuring efficiency.
C)The invisible hand is more effective at ensuring efficiency than it is at ensuring equity.
D)Market power is the instrument with which the invisible hand directs economic activity.

Question

Quizplus · Accepted Answer

The invisible hand refers to the idea that individuals, by pursuing their own self-interests in a competitive market, unintentionally promote the greater good for society as a whole. This process primarily leads to efficiency in resource allocation as prices adjust to reflect supply and demand. However, there is no guarantee that the outcome will be equitable. Therefore, the most correct statement is that the invisible hand is more effective at ensuring efficiency than it is at ensuring equity.

Which Is the Most Correct Statement About the Invisible Hand