The Invisible Hand Principle, as Developed by Adam Smith in the Wealth

question 582

Multiple Choice

The invisible hand principle, as developed by Adam Smith in The Wealth of Nations, states that

• A) government control over economic activity is essential for the talents of individuals to be directed toward their highest valued use.
• B) the economic wealth of a nation is determined by a nation's holdings of precious metals, such as gold and silver.
• C) public policy should prohibit domestic producers from selling their goods to foreigners.
• D) competitive markets will bring individual self-interest and the public interest into harmony.

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Definitions:

Excessive Fearfulness

An overwhelming and often irrational sense of fear that exceeds normal anxiety levels and can interfere with daily activities.

Unrealistic Worry

Excessive concerns or fears about events or situations that are highly unlikely to occur or are out of proportion to their actual risk.

Agoraphobia

An intense fear of being in a situation from which escape is not possible or in which help would not be available if one experienced overwhelming anxiety or a panic attack.

Fear

An emotional response to a perceived threat that prepares the body to either fight the threat or flee from it.