Perfect Competition in Economics & Adam Smith's 'Invisible Hand'

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Which of these industries is closest to perfect competition?

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1. Who coined the term ''invisible hand,'' in what book, and when?

2. Which of the following is NOT one of the five requirements for a perfectly competitive market?

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About This Quiz & Worksheet

The invisible hand and perfect competition are economic concepts that the quiz and worksheet for this lesson will help you to better understand. Specific information includes an examination of competition as it exists for different businesses and the impact that these concepts have on the market.

Quiz & Worksheet Goals

These tools will test you on:

  • Competition within various industries
  • Origin of the term 'the Invisible Hand
  • Requirements for a perfectly competitive market
  • The meaning of the term perfect in perfect competition
  • The function of the invisible hand

Skills Practiced

This quiz and worksheet will assess the following skills:

  • Reading comprehension - ensure that you draw the most important information from the related lesson
  • Information recall - access the knowledge you've gained regarding the origin of the invisible hand idea
  • Critical thinking - apply relevant concepts to examine information about the requirements for a perfectly competitive market in a different light

Additional Learning

To fully understand the material, take the time to review the lesson called Perfect Competition in Economics & Adam Smith's 'Invisible Hand'. This lesson will cover the following objectives:

  • Discover the work of Adam Smith
  • Identify the requirements for a perfectly competitive market
  • Understand what the term perfect actually describes
  • Know how the invisible hand functions in a marketplace
  • Understand the concept of competition among businesses
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