Which of the following best defines Adam Smith’s idea of the invisible hand?(1 point)

Responses

the moment when supply and demand balance each other out
the moment when supply and demand balance each other out

the invisible forces that shape how people act in economic situations
the invisible forces that shape how people act in economic situations

the practice of governments quietly making business monopolies
the practice of governments quietly making business monopolies

the way governments shape economies behind the scenes

1 answer

The best definition of Adam Smith's idea of the invisible hand is "the invisible forces that shape how people act in economic situations." This concept describes how individual self-interest in a free market economy can lead to positive social outcomes and the efficient allocation of resources, often without the need for direct intervention by government or other authorities.