The Concept of the "Invisible Hand" Means

question 13

Multiple Choice

The concept of the "invisible hand" means

• A) each person's private pursuit of wealth will result in the most beneficial overall organization and distribution of economic resources.
• B) although it can't be seen, the hand of government controls the economy and exerts a beneficial pressure that promotes economic welfare.
• C) feudalism inevitably gives rise to capitalism.
• D) externalities must be internalized.

---

Definitions:

Rate of Unemployment

The proportion of people in the labor force who are unemployed and actively seeking work.

Microeconomics

The branch of economics that studies how individuals, households, and firms make decisions to allocate limited resources, typically in markets where goods or services are being bought and sold.

Voter Identification

Laws or measures requiring individuals to present specified forms of identification in order to vote, aimed at preventing voter fraud.

Positive Economics

An area of economics that focuses on factual and cause-and-effect relationships, avoiding any value judgments.