The Invisible Hand Principle, as Developed by Adam Smith in the Wealth

question 582

Multiple Choice

The invisible hand principle, as developed by Adam Smith in The Wealth of Nations, states that

• A) government control over economic activity is essential for the talents of individuals to be directed toward their highest valued use.
• B) the economic wealth of a nation is determined by a nation's holdings of precious metals, such as gold and silver.
• C) public policy should prohibit domestic producers from selling their goods to foreigners.
• D) competitive markets will bring individual self-interest and the public interest into harmony.

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Definitions:

Sustainability

The practice of maintaining processes or systems in ways that do not deplete natural resources and can continue long-term without harming the environment.

Economic Force

External factors such as inflation, interest rates, and economic growth that can influence an organization's performance and strategic planning.

Cultural

Pertaining to the customs, arts, social institutions, and achievements of a particular nation, people, or other social group.

Marketing Environment

Consists of external forces that affect a company's capability to operate effectively in providing products and services to its customers.