Use the theory of the invisible hand to analyze events in everyday life.

Answered: Use the theory of the invisible hand to…

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter1: What Is Economics

Section: Chapter Questions

Problem 11AA

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Use the theory of the invisible hand to analyze events in everyday life.

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The theory of invisible hand is given by the classical economist Adam smith. According to this theory, there is an invisible hand which helps in maintaining equilibrium in the economy. There should not be any government intervention instead the market should be free. In a free market, everyone works in their self-interest and this brings the market into equilibrium.

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