When Economists Refer to "The Invisible Hand," What Do They

question 280

Essay

When economists refer to "the invisible hand," what do they mean?

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Definitions:

Raw Materials Used

The total value of all raw materials consumed in the production process over a specified period.

Factory Depreciation

The systematic allocation of the cost of physical assets used in the manufacturing process over their useful lives.

Direct Labour

The cost of wages for employees directly involved in the production of goods or services.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products, calculated before the production process begins.