Season 1 Episode 1 - Adam Smith
Economics In Ten
00:00
The Invisible Hand in a Free Market Economy
Invisible hand is basely saying that we've all got, as it were, money votes. And wherever the money votes are, if you want something, the invisible hand will provide. In a sense, what were missing, perhaps, from that explanation is the idea of a price mechanism. So in other words, the price mechanism is the key in a free market economy to explain how and why resources are allocated to different purposes.
Transcript
Play full episode
