Adam Smith believed that _____________ would lead to the production of items that consumers want.

• A. central planning
• B. the invisible hand
• C. government regulation
• D. monopolistic control

Answer: (B)

Verified step by step guidance

1. Understand the context of Adam Smith's economic philosophy, which emphasizes how individual self-interest can lead to positive outcomes for society.
2. Recall that Adam Smith introduced the concept of the 'invisible hand' to describe how individuals pursuing their own interests can unintentionally promote the good of the community.
3. Recognize that 'central planning' and 'government regulation' refer to direct control mechanisms, which contrast with Smith's idea of decentralized decision-making.
4. Note that 'monopolistic control' implies market dominance by a single firm, which is not aligned with Smith's belief in competitive markets guided by the invisible hand.
5. Conclude that the phrase 'the invisible hand' best fits the idea that individual actions lead to the production of items consumers want without centralized control.