The invisible-hand concept suggests that:
A. Market failures imply the need for a national economic plan.
B. Big businesses are inherently more efficient than small businesses.
C. The competitiveness of a capitalistic market economy invariably diminishes over time.
D. Assuming competition, private and public interests will coincide.
Answer:A
The invisible-hand concept suggests that:
A. Market failures imply the need for a national economic plan. B. Big businesses are inherently more efficient than small businesses. C. The competitiveness of a capitalistic market economy invariably diminishes over time. D. Assuming competition, private and public interests will coincide.
Explanation: The invisible-hand concept suggests that assuming competition, private and public interests will coincide. The invisible hand describes the unintended social benefits of an individual’s self-interested actions, a concept that was first introduced by Adam Smith in The Theory of Moral Sentiments, written in 1759, invoking it in reference to income distribution.