Question

An economic force given relatively free rein by society to work through the market is: a. a political force. b. a price mechanism. c. a social force. d. a market force.

Answer 1

Answer:

The correct answer is option d.

Explanation:

A market force refers to the invisible forces in the economy which help in determining equilibrium in the market through the free movement of demand and supply.

It determines the equilibrium price, quantity, wages, salaries, etc. in a free market. It works best with no or low government intervention.

Adam Smith, in his book, wealth of nations, referred market forces as 'the invisible hand'.