Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Market Equilibrium

Question:
In a perfectly competitive market an ‘Invisible Hand’ is at play which changes price whenever there is imbalance in the market. Who gave the concept of invisible hand?
Options:
Adam Smith
Amartya Sen
Irving Fisher
David Ricardo
Correct Answer:
Adam Smith
Explanation:
From the time of Adam Smith (1723-1790), it has been maintained that in a perfectly competitive market an ‘Invisible Hand’ is at play which changes price whenever there is imbalance in the market.