2020 · Q61
Which one of the following was recognized as ‘invisible hand’ by Adam Smith?
indian-polity-economyeconomy-fundamentals
- AGovernment
- BMarket/Price mechanism
- CJudiciary
- DLegislature
Explanation
Adam Smith's 'invisible hand' (The Wealth of Nations, 1776) is the market/price mechanism: individuals pursuing their own self-interest are led, as if by an invisible hand, to promote the public good. Government, judiciary and legislature are visible institutions — not the metaphor Smith intended.