The "invisible hand" concept to describe the guiding function of prices was developed by:
A) Jeremy Bentham.
B) Adam Smith.
C) Milton Friedman.
D) David Ricardo.

Question

Quizplus · Accepted Answer

The "invisible hand" concept was developed by Adam Smith in his book, "The Wealth of Nations." He used this concept to describe how prices in a free market economy are determined by the interactions of buyers and sellers, rather than by any central planner. This in turn leads to efficient allocation of resources and promotes economic growth.

The "Invisible Hand" Concept to Describe the Guiding Function of Prices