Adam Smith's "Invisible Hand" Explains

question 118

Multiple Choice

Adam Smith's "invisible hand" explains

• 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
• E)how the creation of goods and services (supply)generates its own demand by creating employment and income

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Definitions:

Pigment

A substance that provides color to other materials, such as paint or the cells in our body.

Red Blood Cell

A type of blood cell that is primarily responsible for transporting oxygen from the lungs to the rest of the body, also known as an erythrocyte.

Rhesus Antigen

A protein substance found on the surface of red blood cells in most people, determining the positive or negative aspect of blood type and important in blood transfusions.

Protein

A macromolecule composed of amino acids crucial for the structure, function, and regulation of the body's tissues and organs.