What Does the "Invisible Hand" Refer to

question 15

Multiple Choice

What does the "invisible hand" refer to

• A)the marketplace guiding the self-interests of market participants into promoting general economic well-being
• B)the marketplace as a place where government looks out for the interests of individual participants in the market
• C)the equity that results from market forces allocating the goods produced in the market
• D)the automatic maximization of consumer surplus in free markets

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Definitions:

Whistleblower

An employee who discloses organizational wrongdoing to parties who can take action.

Virtuous Circle

The idea that corporate social performance and corporate financial performance feed and reinforce each other.

Corporate Profits

The surplus income of a company after all expenses have been deducted from revenues, indicating the financial health and earning power of the business.

Social Performance

An organization’s effectiveness in achieving social objectives and creating positive impact on society, often considered alongside financial performance.