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The main limitation of the invisible hand is that it is largely based on the assumption that markets are efficient and people are rational. The notion of the invisible hand has been employed in economics and other social sciences to explain the division of labour the emergence of a medium of exchange the growth of wealth the patterns such as price levels manifest in market competition and the institutions and rules of society. Invisible Hand Definition Consumers decide what they need and. . He used the concept in his two books The Theory of Moral Sentiments and The Wealth of Nations. With this force reaching the equilibrium of the demand and supply becomes possible. The graph shows an early economic theory known as the invisible hand Which best describes the idea behind the invisible hand. What best describes the invisible hand. Individuals seeking their own self interest benefit the economy as a whole. Producers and consu...
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