Economics · History of Economic Thought
According to Adam Smith, what does the concept of the 'invisible hand' represent?
- 1Government regulation of free markets.
- 2Collective decision-making by socialist councils.
- 3The market mechanism guiding self-interested individuals to promote the common good.✓
- 4The rigid specialization of labor in factory systems.
Correct answer
The market mechanism guiding self-interested individuals to promote the common good.
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