0
One limitation of the invisible hand theory is that it assumes perfect competition and complete information, which may not always hold true in real-world markets. Additionally, the invisible hand may not always lead to an optimal allocation of resources, as it does not account for externalities or market failures. Finally, critics argue that the invisible hand does not address issues of income inequality and distribution of wealth.
Add your answer:
Earn +20 pts
What do we mean when we say invisible hand?
Adam Smith's invisible hand theory
Examples of the invisible hand?
There are many different types of examples of the invisible hand. The invisible hand could represent the verbal punishment a child gets for example.
Who wrote about the invisible hand in a market economy?
The person who wrote about invisible is a great economist,who is also considered as the father of economics "adam smith".he is the person who wrote about invisible hand.
What is The invisible hand is?
stuff RC
Need a sentence using invisible?
She held the ring in her hand and suddenly became invisible!
Make a sentence with the word invisible?
He felt he was invisible to everyone.The invisible hand reached out and touched him on the shoulder.
What does the 'invisible hand' in the market place?
It suggests there is an invisible balance between supply and demand. If there's too much supply, the invisible hand pushes the price down until vendors are able to sell their overstock. If there is less demand (as for carriages when cars took over), the invisible hand guides production down and price up.
Self-regulating nature of the marketplace?
The invisible hand
The invisible hand directs economic activity through?
The invisible hand directs economic activity through prices. The price of commodities basically determines the law of supply and demand.
The invisible hand is .?
The mechanism that works in a free-market (the market we observe in the USA or UK) which equates supply and demand. This obviously doesn't always occur, but it is the "invisible hand" that we refer to.
According to Adam Smith the market was directed by?
an invisible hand.
According to Adam smith the market was directed by which of these?
an invisible hand
