According to Adam Smith, the "Invisible Hand" Refers to Which

question 32

Multiple Choice

According to Adam Smith, the "invisible hand" refers to which of the following?

• A) The "best interests of society (public interest) will occur as an outcome of the market process coordinating the self-interested interactions of buyers and sellers (private interest).
• B) Government interference is the invisible hand of inefficiency.
• C) Bribes and graft is the invisible hand of inefficiency.
• D) The "best interests of society" will occur as an outcome of careful guidance by government authorities in allocating scarce goods and services.

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Definitions:

Product Layout

An arrangement where workstations or machinery are sequenced according to the steps in which a product is made, facilitating a continuous flow of production.

Supply Sources

Supply sources are origins or places from which goods, materials, or resources are obtained to fulfill the needs of production or consumption.

MRP

Material Requirements Planning, a system for managing manufacturing processes by ensuring that materials and products are available for production and delivery at the right time.

Computer-based Production Planning

The use of computer systems and software to plan, coordinate, and optimize the production process in manufacturing.