Question

The video tells the story of a woman who decided to start a new type of business rather than a business similar to others in her community. Her success as a mushroom producer benefited her family, her community, the other mushroom farmers she eventually trained and many others.
This is an example of:

A. socialism.
B. a command economy.
C. the invisible hand.
D. bureaucracy.
E. economic rejuvenation.

Answer 1

Answer:

C. the invisible hand.

Explanation:

The action by the woman is an example of the invisible hand. The invisible hand is a concept that explains the forces of demand and supply that determines equilibrium price and quantity of goods and services. It also illustrates how an individual can make personal decisions, due to the ever-existing freedom of production, thereby benefiting himself/herself and the community entirely which is evident in this case of  this mushroom producer. Therefore, the correct answer C.