Question

What did Adam Smith call the forces that influence the market system?

• A. Invisible benefits
• B. Invisible labour
• C. Invisible hand
• D. Invisible wealth

Hint:

The “Invisible Hand” explains how free markets regulate themselves through demand and supply without direct government control.

Answer 1

The Correct Option is C

Step 1: Understanding Adam Smith’s concept.
Adam Smith, known as the father of modern economics, introduced the concept of the “Invisible Hand” in his book *The Wealth of Nations*. He explained that individuals pursuing their own self-interest unintentionally contribute to the overall benefit of society through market mechanisms.

Step 2: Analysis of the options.

• 
  (A) Invisible benefits: Incorrect. This is not the term used by Adam Smith.
• 
  (B) Invisible labour: Incorrect. Labour is a factor of production but not the term he used.
• 
  (C) Invisible hand: Correct. This is the famous term used to describe market forces.
• 
  (D) Invisible wealth: Incorrect. This is not a recognized concept by Adam Smith.

Step 3: Conclusion.
Adam Smith called the forces that regulate the market system the “Invisible Hand”.

Final Answer:} Invisible hand.