The mechanism employed by the 'invisible hand' to direct economic activity is:

Question

Quizplus · Accepted Answer

The 'invisible hand' is the term used to describe the self-regulating nature of the market economy. This means that prices act as signals for producers and consumers, telling them what goods and services are in demand and how much of them should be produced or consumed. Therefore, prices are the mechanism employed by the 'invisible hand' to direct economic activity.

The Mechanism Employed by the 'Invisible Hand' to Direct Economic