The "invisible hand" is understood as the


A. labor required to produce valuable goods and services
B. set of regulations in a command economy that promote fairness
C. principle that self-interest guides individuals to the general good
D. bureaucracy that enforces the commands of central planners
E. institution that divides public and private property

The correct answer is A. It depends more on self-interest than a command economy does.

Explanation:

In the market economy, economical factors are mainly regulated by the actions of individuals and their interests, because these two factors determine supply and demand. For example, the supply of a specific product is determined by the manufactures of this product and their interest in obtaining profits. This does not occur in a command economy because, in this, the general interests of society prevail over self-interests, and economical factors are regulated by the government.

Answer:

The correct answer is A. A market economy depends more on self-interest than a command economy does.

Explanation:

A market economy is an economy where prices are determined by supply and demand in the market, at a price agreed by both buyers and sellers.

In a free-market system, the market and the whole economy are based primarily on the rational allocation of resources, that is, the type and quantity of goods on the market is determined by demand. The effort to achieve the highest possible profit forces the manufacturer to produce as efficiently as possible. This effort to maximize has two sides of the balance sheet: revenue works with the volume and pricing of the final product, but from the point of view of efficiency, on the contrary, it is about minimizing costs and especially not allowing depreciation of entire business cases as losses. The resulting product is then redistributed through the market.