Adam Smith's "invisible hand" refers to the role of
A.the government
B.customs and beliefs
C. the market
D. factors of production
http://www.investorwords.com/2633/invisible_hand.html
What do you think?
I think the answer is C. the market
Right.
C. the market
To understand Adam Smith's concept of the "invisible hand," we can look at his book, "The Wealth of Nations." In this book, Smith argued that individuals pursuing their self-interests in a free market would unintentionally benefit society as a whole. He believed that when individuals act in their own self-interests, they are guided by an invisible hand that leads them to make choices that benefit not only themselves but also the larger society.
So, to answer the question, the invisible hand refers to the role of the market. The market, driven by the actions of self-interested individuals, operates in such a way that it guides the allocation of resources and generates economic growth and prosperity for a society.