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4 April, 07:44

The phrase "invisible hand" means that:

no one person or firm actually sets the price.

The tendency of competition to cause individuals and firms to unintentionally promote the interests of society.

market prices are not always known to buyers and sellers.

buyers and sellers often do not meet so the transactions are invisible.

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  1. 4 April, 10:55
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    The correct answer is letter "B": The tendency of competition to cause individuals and firms to unintentionally promote the interests of society.

    Explanation:

    In his book "An Inquiry into the Nature and Causes of the Wealth of Nations" (1776), British economist Adam Smith (1723-1790) introduced the term "invisible hand" to refer that economic factors (buyers and sellers) naturally influence in the fluctuations of supply and demand without the need for the intervention of the government.

    According to Smith, buyers and sellers interactions act as an "invisible hand" arranging proper levels of competition between businesses and promoting the best interest of societies.
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