Which of the following best defines Adam Smith's idea of the Invisible Hand

Question

A. The practice of governments quietly making business monopolies
B. The invisible forces that shape how people act in economic situations
C. The way governments shape economies behind the scenes
D. The moment when supply and demand balance each other out

Answer 1

The best definition of Adam Smith's idea of the Invisible Hand is:

B. The invisible forces that shape how people act in economic situations.

This concept refers to the self-regulating nature of the marketplace, where individuals pursuing their own self-interest inadvertently contribute to the overall economic well-being of society.