When Adam Smith Said Economic Activity Was Directed by an "Invisible

question 508

Multiple Choice

When Adam Smith said economic activity was directed by an "invisible hand," he was referring to the fact that

• A) competitive markets motivate altruistic individuals to pursue productive activities that only serve their private interests.
• B) when economic activity is directed by competitive markets, the actions of self-interested individuals will generally serve the public interest.
• C) invisible forces will lead to economic chaos unless wise central planning directs economic activity.
• D) scarcity is largely the result of invisible forces that would be eliminated if individuals were free to pursue their own self-interests.

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Definitions:

Power

The ability or capacity to influence, control, or manipulate outcomes, behaviors, or decisions, often within social, economic, or political contexts.

Passing Strategy

Techniques individuals use to present themselves as part of a different group than they actually are, often to avoid stigma or gain social acceptance.

Dissociating

The psychological process of disconnecting or detaching oneself from thoughts, feelings, memories, or sense of identity, often as a coping mechanism for stress or trauma.

Biological Differences

The physiological and genetic distinctions between individuals or groups, often related to physical attributes, health conditions, or capabilities.