Question

Which 19th-century situation best represents Adam Smith's ideas on how the
"invisible hand of the market works?
A. Large corporations struggled to make profits in countries that
adopted capitalism.
B. Countries that adopted mercantilism often had stronger
economies than capitalist countries.
C. Poor citizens in capitalist countries frequently faced extremely
harsh lifestyles.
D. Countries that adopted capitalism often created more jobs for middle-class citizens.

Answer 1

Answer:

D. Countries that adopted capitalism often created more jobs for middle-class citizens.

Explanation:

This is the statement that best represents Adam Smith's ideas on how the invisible hand of markets works. Adam Smith's "invisible hand" is a metaphor that describes the way in which a capitalist economy operates. Smith believed that, if left alone, a capitalist economy would grow without any influence or manipulation, simply as a response to the opposing but complementary forces of supply and demand.

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