The Concept of "Invisible Hand" Introduced by Adam Smith Explains

question 11

Multiple Choice

The concept of "invisible hand" introduced by Adam Smith explains:

• A)why people act in their own best interests.
• B)why the government intervenes to overcome failures in private markets.
• C)how people,acting out of self-interest,unintentionally promote the general good.
• D)how comparative advantage and specialization promote international trade.
• E)how the creation of goods and services generates its own demand by creating employment and income.

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Definitions:

Horizontal Mobility

The movement of individuals or groups across similar social and economic positions, without a change in their status.

Human Capital Theory

posits that individuals and societies benefit from investments in people's education and skills, equating such investment to building capital.

Economic Success

Economic success is the achievement of financial prosperity and stability, often measured by factors such as income, wealth, and employment status in the context of an individual, organization, or nation.

Family Connections

Relationships and bonds among family members, including immediate and extended relatives.