Adam Smith, the founding father of economics, likened the price mechanism to
A machine
An invisible hand
A computer
A herd of animals
Option C
In 18th Century Scottish economist, Adam Smith saw an understanding of the price mechanism as a central to understanding trade and exchange between people and countries. In a sense, relative prices instructed people to produce more or less- driven by self- interest, the price mechanism directed people to improve their well-being through specialisation an the effective allocation of scarce resources.
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