When Adam Smith Said Economic Activity Was Directed by an "Invisible

question 508

Multiple Choice

When Adam Smith said economic activity was directed by an "invisible hand," he was referring to the fact that

• A) competitive markets motivate altruistic individuals to pursue productive activities that only serve their private interests.
• B) when economic activity is directed by competitive markets, the actions of self-interested individuals will generally serve the public interest.
• C) invisible forces will lead to economic chaos unless wise central planning directs economic activity.
• D) scarcity is largely the result of invisible forces that would be eliminated if individuals were free to pursue their own self-interests.

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Definitions:

Moderate Levels

Degrees or extents of something that are considered to be within a middle or average range, avoiding extremes.

High Levels

Refers to an elevated state or degree of any measurable variable, quality, or condition.

Expertise

Specialized knowledge or skill obtained from extensive experience or training in a particular field.

Fear-based

Motivated or driven by fear, often leading to behaviors aimed at avoiding, minimizing, or surviving perceived threats.