The invisible hand is:
A) when individuals' pursuit of self-interest within free markets may allocate resources efficiently.
B) when the state plans resource allocation.
C) the inland revenue.
D) fiscal policy.

Question

Quizplus · Accepted Answer

The invisible hand, a term introduced by Adam Smith, refers to the self-regulating nature of the marketplace in determining how resources are allocated. It suggests that when individuals pursue their own self-interest, they inadvertently contribute to the economic well-being of society through the efficient allocation of resources.

The Invisible Hand Is