Adam Smith's Theory of the Invisible Hand Posits That the Most

question 6

Multiple Choice

Adam Smith's theory of the invisible hand posits that the most efficient allocation of resources is often achieved by:

• A)reducing economic inequality.
• B)government intervention in the market.
• C)collective action.
• D)the actions of independent, self-interested buyers and sellers.

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Definitions:

Consumer Nationalism

The preference for buying domestic goods over foreign goods as a form of patriotism, often influenced by the belief that purchasing home-grown products supports the national economy.

Currency Fluctuation

Variations in the value of one currency compared to another, affecting international trade and investments.

International Organization

An entity operating across multiple countries, focusing on global or transnational issues, either for profit or as a non-profit.

Participating Countries

Nations that are involved or engaged in an international event, project, agreement, or any collaborative effort.