Which one of the following was recognized as ‘invisible hand’ by Adam Smith ?

Adam Smith, the founding father of modern economics, introduced the 'invisible hand' metaphor in his 1776 work, 'The Wealth of Nations' [4]. This concept describes the self-regulating nature of the market where individuals pursuing their own self-interest inadvertently promote the broader societal interest [5]. Specifically, the 'invisible hand' refers to the market or price mechanism that naturally adjusts prices to correct imbalances between supply and demand [1]. When excess demand or supply occurs, this mechanism shifts prices to restore equilibrium without the need for centralized government intervention [2]. By aligning individual incentives with economic efficiency, the price mechanism ensures optimal resource allocation and societal welfare in a free-market economy. Consequently, the 'invisible hand' is synonymous with the market's spontaneous order and its ability to function as an unconscious mechanism of economic efficiency.

Sources

1. [2] Macroeconomics (NCERT class XII 2025 ed.) > Chapter 1: Introduction > Adam Smith > p. 4
2. [4] https://www.investopedia.com/terms/i/invisiblehand.asp
3. [5] https://pmc.ncbi.nlm.nih.gov/articles/PMC6043906/
4. [1] Microeconomics (NCERT class XII 2025 ed.) > Chapter 5: Market Equilibrium > Chapter 5 > p. 72