Adam Smith Formulated the Invisible Hand and the Free Market

question 6

Multiple Choice

Adam Smith formulated the invisible hand and the free market to explain the motivation for individual behaviors. The invisible hand refers to:

• A)the variables within an individual that lead to motivation and behavior.
• B)the desire to influence others, the urge to change people or events, and the wish to make a difference in life.
• C)the work conditions related to satisfaction of the need for psychological growth.
• D)the unseen forces of a system that shape the most efficient use of people, money, and resources for productive ends.

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Definitions:

Compensation Strategy

An approach used by businesses to design and implement payment systems and benefits to employees.

Determinants

Factors or elements that bring about an outcome or influence a result.

Classification System

An organized method for categorizing and systematizing objects or information based on established criteria.

Job Evaluation

A systematic process used to assess the relative value of jobs within an organization, for the purpose of establishing fair compensation.