5
QuizMultiple Choice

Business and Government — Test

Question 5 • Economics

Which best describes the idea behind the "invisible hand"?

Answer
A
Producers decide what to make for consumers, which guides the economy.
B
Government sets policy for producers and consumers, which guides the economy.
C
Consumers decide what they need and want to buy, which guides the economy.
D
Individuals seeking their own self interest benefit the economy as a whole.

Explanation

The “invisible hand” describes how people pursuing their own interests can, through their choices in the market, help benefit the economy as a whole. For example, businesses seeking profit may produce goods that consumers want. So the best choice is “Individuals seeking their own self interest benefit the economy as a whole.”

AI-written and checked against the verified answer.

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