Question

The invisible hand is _____.

the market in which households purchase the goods and services that firms produce


the concentration of the productive efforts of individuals and firms on a limited number of activities


a term economists use to describe the self-regulating nature of the marketplace


an organization that uses resources to produce a product

Answer 1

A term economists use to describe the self-regulating nature of the marketplace.

Step-by-step explanation:

The invisible hand is a concept that refers to the fact that free markets will look for the equilibrium in the supply and demand even when no intervention is seen. The different forces like consumers, producers, intermediaries have their own interests but they also have a dependence on each other that makes the market to find the equilibrium without the intervention of the government. So, according to this, the invisible hand is a term economists use to describe the self-regulating nature of the marketplace.

Answer 2

The invisible hand is an economic term to describe the tendency of a market prices to lead individuals chasing their own interests into productive activities that encourage economic welfare of society too. With this explained, we can choose C a term economists use to describe the self-regulating nature of the marketplace as the correct answer.