the invisible hand refers to question 15 options: a) how central planners made economic decisions. b) how the decisions of households and firms lead to desirable market outcomes. c) the control that large firms have over the economy. d) government regulations without which the economy would be less efficient.

Respuesta :

b). The invisible hand refers to how the decisions of households and firms lead to desirable market outcomes.

The invisible forces that steer the free market economy are represented by the concept of the invisible hand. The best interests of society as a whole are served by allowing individuals to act in their own self-interest and with the freedom to produce and consume. Prices and trade flow naturally as a result of the ongoing interaction of individual influences on supply and demand in the market.

The phrase "invisible hand" initially originated in Adam Smith's well-known book The Wealth of Nations to explain how free markets can motivate people to generate things that society needs.

So, option b is correct.

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