Adam Smith's Invisible Hand Principle Stresses

question 16

Multiple Choice

Adam Smith's invisible hand principle stresses

• A) that benevolence is a powerful motivator that encourages individuals to engage in productive economic activity.
• B) the tendency of the competitive market process to direct self-interested individuals into activities that enhance the economic welfare of society.
• C) the potential of government regulation as a means of bringing the self interest of individuals into harmony with the economic welfare of society.
• D) the tendency of self-interested individuals to pursue activities that benefit themselves but harm the overall economic welfare of society.

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Definitions:

Relies

To depend on with full trust or confidence.

Professional Gambling

The act of wagering money or something of material value on an event with an uncertain outcome with the primary intent of winning additional money or material goods professionally.

Dependent

Typically refers to someone who relies on another, especially for financial support, such as a child or spouse supported by a family's primary earner.

Liquidates

the process of converting assets into cash or other liquid assets, often associated with closing a business or settling debts.