According to Adam Smith's invisible hand

Question

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Adam Smith's invisible hand refers to the idea that the self-interested actions of individuals in a market economy can lead to an overall beneficial outcome for society as a whole, without the need for government intervention or central planning. This is because as individuals pursue their self-interest, they are guided by market forces (prices, supply, and demand) that ultimately result in a state of equilibrium in the market. Therefore, option C is the best choice as it correctly describes the concept of the invisible hand. Option A is incorrect as it suggests that markets cannot function effectively without government involvement. Option B is partly correct but incomplete, as while it is true that markets can experience fluctuations and movements away from equilibrium in response to changes in supply and demand, the invisible hand theory posits that these forces ultimately lead to a return to equilibrium. Option D is entirely incorrect, as there is no mention of an "invisible glove" in Adam Smith's work.

According to Adam Smith's Invisible Hand