What Does Adam Smith's "Invisible Hand" Explain

question 58

Multiple Choice

What does Adam Smith's "invisible hand" explain?  

• 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

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Definitions:

Functions

Refers to the natural purposes or activities that an entity or organ performs or is intended to perform.

Energy

The capacity to do work, which can be physical or mental, and is essential for performing daily activities and maintaining health.

Healthy Diet

A diet that provides the body with essential nutrition: fluid, adequate essential amino acids from protein, essential fatty acids, vitamins, minerals, and adequate calories without excessive fat and sugar.

Fish

Aquatic animals that are a source of protein, omega-3 fatty acids, and other nutrients, contributing to a healthy diet.