Choose the best answer to complete the sentence according to the information in the lecture. 19. The ‘invisible hand’ refers to the:

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Question context: The sentence completion asks about the meaning of the term 'invisible hand' as used in economic theory.
Option a: 'power of large corporations.' This is not aligned with the concept of the invisible hand. The idea centers on market processes arising from individuals pursuing their own interests, not on the power of large firms.
Option b: 'benefits of economic development.' While the invisible hand can indirectly influence development through market coordination, the phrase itself does not define development benefits; it describes a mechanism of the free market, not an outcome.
Option c: 'influence of government regulations.' The traditional notion of the invisible hand emphasizes minimal or limited government intervention; it asserts that markets self-organize with little central planning. Therefore, this option misrepresents the concept by focusing on regulation rather than voluntary exchange and price signals.
Option d: 'natural laws guiding the free market.' This option accurately captures the core idea: the invisible hand refers to spontaneous order arising from individuals pursuing their own interests within competitive markets, driven by natural economic forces like supply, demand, and price signals. This is the most faithful description of the concept as originally proposed in classical economics.

Dashboard Diploma 2025 Term 1 - CAL1 Listening Section Part B (Session C) (no Audio)

Choose the best answer to complete the sentence according to the information in the lecture. 19. The ‘invisible hand’ refers to the:

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