The "invisible hand" concept refers to the
A)guiding function of prices in a market system.
B)implicit influence that the government has on the actions of firms.
C)regulatory structure that markets must operate in.
D)underlying money flows that promote the trading of goods and services.

Question

Quizplus · Accepted Answer

The "invisible hand" concept, introduced by Adam Smith, refers to the self-regulating nature of the marketplace in determining how resources are allocated based on the interplay of supply and demand, guided by the price mechanism.

The "Invisible Hand" Concept Refers to the