Question

The invisible hand principle indicates that competitive markets can help promote the efficient use of resources Group of answer choices only if buyers and sellers really care, personally, about economic efficiency. even when each market participant cares only about their own self interest rather than about the overall efficiency of resource use. even if business firms fail to produce goods efficiently. if, and only if, businesses recognize their social obligation to keep costs low and use resources wisely.

Answer 1

even when each market participant cares only about their own self interest rather than about the overall efficiency of resource use.

Step-by-step explanation:

A capitalist economy also referred to as free-enterprise system, pure capitalism, or free market can be defined as a type of economy in which prices, products and services are being determined by the market rather than the government. Thus, a capitalist economy is devoid (free) of government regulations, interference or control because the market (enterprises) are the ones who are saddled with the responsibility of determining the market forces.

Simply stated, a capitalist economy is a type of economy that is completely driven by demand and supply of goods and services.

The invisible hand principle indicates that competitive markets can help promote the efficient use of resources even when each market participant such as producer and suppliers cares only about their own self interest rather than about the overall efficiency of resource use.

The "invisible hand" concept asserts that, the self-interest by producers and suppliers of resources in a market system will automatically promote the public interest as well.

This ultimately implies that, public and private interest will always coincide assuming there exist competition in a free market system.

In conclusion, the invisible hand concept is a metaphorical description of the unforeseen forces that typically moves a free market system or economy.