The Famous Phrase "Invisible Hand" Refers to

question 20

Multiple Choice

The famous phrase "invisible hand" refers to

• A)the cyclical nature of a capitalist society, in which the money that people earn through labor is funneled back into society through the consumption of goods.
• B)Smith's concept that everyone seeks out their own interests, thus fueling the capitalist regime through their own selfishness.
• C)Smith's concept that everyone seeks out their own interests, with the net result that everyone's needs are met.
• D)humans inextricable links to one another and most people's inability to function without a connection to another person.

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Definitions:

Costs

The value of resources consumed in the production of goods and services, including both fixed and variable expenses.

Differentiated Product

A product that is distinct in some way from others in the same category, allowing the seller to compete on factors other than price.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for competition based on quality, price, and marketing.

Industry

A group of companies or organizations that produce similar goods or services.