Question

What assumptions about the economy must be true for the invisible hand to work? To what extent are those assumptions valid in the real world? Do these conditions hold in the social service industries?

Answer 1

To what extent are those assumptions valid in the real world? The two assumptions are - 1. Every individual must be selfish in nature and collectively this leads to the greater good for society, 2. Every individual must have complete information of the goods or services they are consuming.

Step-by-step explanation:

Assumptions that are considered to be true for invisible hand to work - Every individual must be selfish and intend only his own gain. This collective selfish nature of every individual promotes better outcomes for society more effectively than when individuals intend to benefit society.