Question

The invisible hand of the marketplace acts to allocate resources Group of answer choices
a. efficiently but does not necessarily ensure that resources are allocated fairly.
b. both fairly and efficiently.
c. fairly but does not necessarily ensure that resources are allocated efficiently.
d. neither fairly nor efficiently.

Answer 1

Answer:

The correct answer is letter "A": efficiently but does not necessarily ensure that resources are allocated fairly.

Explanation:

Scottish economist and philosopher Adam Smith (1723-1790) coined the term invisible hand to give meaning to the unseen force the moves the free market economy. According to the theory, the interest of society is achieved by freedom of consumption and production. It means that the market will find the equilibrium point without the need for government intervention, which could allocate goods or services efficiently but not necessarily fairly.