The concept of "the invisible hand" suggests that markets
A) do not produce the efficient quantity.
B) are always fair.
C) produce the efficient quantity.
D) are unfair.
E) allocate resources unfairly and inefficiently.

Question

Quizplus · Accepted Answer

The concept of "the invisible hand" refers to the idea that in a free market, buyers and sellers will interact to produce the optimal allocation of resources without any central coordination. This implies that markets will produce the efficient quantity of goods and services.

The Concept of "The Invisible Hand" Suggests That Markets