Asked by Anshul Suryavanshi on Jun 24, 2024

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The invisible hand of the marketplace acts to allocate resources efficiently, but it does not necessarily ensure that resources are allocated fairly.

Invisible Hand

A metaphor introduced by Adam Smith to describe how an individual's pursuit of self-interest in a free-market economy inadvertently benefits society as a whole.

Allocation of Resources

The process of allocating resources among competing uses or projects in order to achieve desired outcomes.

  • Recognize the influence and function of governmental policies in terms of income distribution and economic efficiency.
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CG
Calvin Gerald Wilson Sr.Jun 28, 2024
Final Answer :
True
Explanation :
The concept of the invisible hand, introduced by Adam Smith, suggests that free market forces lead to efficient resource allocation based on supply and demand. However, it does not address the fairness or equity of this allocation, which can result in significant disparities in wealth and access to resources.