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, coined by Adam Smith, refers to the guiding function of prices in a market system where self-interested individuals, acting independently, will unknowingly promote the general welfare of society through their economic transactions. This means that prices will adjust to balance supply and demand, and individuals will make choices that benefit themselves while contributing to the overall functioning of the economy.

The "Invisible Hand" Concept Refers to The