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The Idea of the "Invisible Hand" Discussed by Scottish Economist

Question 6

Multiple Choice

The idea of the "invisible hand" discussed by Scottish economist Adam Smith is that


A) the government needs to step in to manipulate the market in order for it to work efficiently.
B) when individuals pursue their rational self-interest, the market operates effortlessly and efficiently.
C) individuals cannot act rationally and therefore must be guided by the government.
D) economic vitality is not possible under capitalism.
E) the government should not let individuals pursue their own particular interests without regulation, or the market will not work efficiently.

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