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Why Is the Image of the "Invisible Hand" in Adam

Question 7

Multiple Choice

Why is the image of the "invisible hand" in Adam Smith's analysis of capitalism said to be misleading?


A) For markets to function properly, rules must be enforced by the state when violated.
B) For markets to function properly, entrepreneurs must be admitted by lottery drawing.
C) For markets to function properly, competition must be enforced by contractual exchanges.
D) For markets to function properly, contractual exchanges must be enforced by historical precedents.

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