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dem82 [27]
3 years ago
6

Which statement best summarizes the invisible hand theorem? Multiple Choice Government policies direct people's selfish desires

(tempered by social and economic forces) to the common good. Cultural norms direct people's selfish desires (tempered by political and economic forces) to the common good. Markets direct people's selfish desires (tempered by political and social forces) to the common good. Social, political, and economic forces act against people's selfish desires to promote the common good.
Social Studies
1 answer:
natka813 [3]3 years ago
8 0

Answer:

Markets direct people's selfish desires (tempered by political and social forces) to the common good.

Explanation:

The invisible hand theorem by Adam Smith asserts that  beneficial social and economic outcomes may arise from the selfish actions of individuals driven by the market and the interference government policies which will result in the common good of all. It should however be noted that these beneficial outcomes and common good of all was not intended by the actors or actions (selfish actions and government policies) in the market but resulted due to inexplanable coincidence hence the term "invisible hand".

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