Respuesta :
The fundamental issue with allowing the invisible hand to govern the economy is that it makes the assumption that markets are effective and that people are reasonable about issues like unfavorable externalities, monopolies, irrationality, and real-world issues.
What is the invisible hand in economy?
The term "invisible hand in the economy" is an economic thought of unforeseen increased societal advantages and public good produced by people acting in their own self-serving interests.
Adam Smith initially discussed the idea in his 1759 book The Theory of Moral Sentiments. The main problem with letting the invisible hand regulate the economy is that people and corporations may incur external expenses as a result of pursuing their own self-interests.
As a result, negative externalities, monopolies, irrationality and real-world problems of letting the invisible hand regulate the economy.
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