Adam Smith's Concept of the Invisible Hand Refers To

question 42

Multiple Choice

Adam Smith's concept of the invisible hand refers to:

• A) government controls.
• B) import and export costs.
• C) the rise and fall of prices that guide individual actions in a market.
• D) the combined impact of foreign trade and aid on a national economy.

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Definitions:

Future Economic Benefits

The capability to assist in the direct or indirect increase of cash and cash equivalents for an organization.

Economic Entity Assumption

An accounting principle that assumes a company and its owners are separate entities for recording and reporting financial transactions.

Basic Assumption

Fundamental principles underlying the preparation of financial statements, typically including economic entity, going concern, monetary unit, and periodic reporting.

Corporate Form

The structure of a corporation, recognized by law as a single entity separate from its owners, with its own rights, privileges, and liabilities.