What Does the "Invisible Hand" Described by Adam Smith Refer

question 83

Multiple Choice

What does the "invisible hand" described by Adam Smith refer to?  

• A) the allocative role of markets and market forces 
• B) the importance of government intervention and central planning 
• C) the actions of successful entrepreneurs in directing the economy 
• D) the role of monopolized industries in leading the nation

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Definitions:

Break-Even

The point at which total costs equal total revenue, resulting in neither profit nor loss.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production supplies.

Fixed Costs

Expenses that do not change with the level of output or activity, such as rent, salaries, and insurance premiums.

Break-Even

The point at which total revenues equal total costs, resulting in neither profit nor loss.