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:

Experience Differentiation

Creating a unique and memorable customer experience that sets a product, service, or brand apart from its competitors.

Competitive Advantage

A situation or factor that gives a business an advantage or a better standing in relation to its competitors.

SWOT Analysis

A strategic planning tool used to identify and understand the Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Franz Colruyt

A Belgian entrepreneur, known for founding the Colruyt Group, a major retail corporation specializing in discount supermarkets within Belgium and other areas.