2
QuizMultiple Choice

Government Influence and Labor Markets — Test

Question 2 • Economics

Which best describes the idea behind the "invisible hand"?

Answer
A
Government sets policy for producers and consumers, which guides the economy.
B
Individuals seeking their own self interest benefit the economy as a whole.
C
Producers decide what to make for consumers, which guides the economy.
D
Consumers decide what they need and want to buy, which guides the economy.

Explanation

The “invisible hand” describes how people pursuing their own interests can, through their choices in the market, help benefit the economy as a whole. For example, businesses seeking profit may produce goods that consumers want. So the best choice is “Individuals seeking their own self interest benefit the economy as a whole.”

AI-written and checked against the verified answer.

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