Question

The invisible hand refers to the:

A.
notion that, under competition, decisions motivated by self-interest promote the social interest.

B.
fact that the U.S. tax system redistributes income from rich to poor.

C.
tendency of monopolistic sellers to raise prices above competitive levels.

D.
fact that government controls the functioning of the market system.

Answer 1

The invisible hand refers to the notion that self-interested actions in a competitive market can promote the social interest.

Step-by-step explanation:

The invisible hand refers to the notion that, under competition, decisions motivated by self-interest promote the social interest. It suggests that individuals pursuing their own interests in a competitive market will inadvertently promote the greater good for society as a whole. This concept was introduced by economist Adam Smith to explain the benefits of free markets and the role of self-interest in economic decision-making.