The "invisible hand" using Adam Smith's terminology refers to
A)government control of the market.
B)market forces working through the price mechanism.
C)the money supply that serves to keep the economy working smoothly.
D)the role of innovation in maintaining a steady rate of growth.
E)"behind-the-scenes" policy making to influence how markets allocate scarce resources.

Question

Quizplus · Accepted Answer

The "invisible hand" refers to the idea that market forces, such as supply and demand, work through the price mechanism to guide resources to their most efficient use. It is a concept often associated with the economist Adam Smith.

The "Invisible Hand" Using Adam Smith's Terminology Refers to