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The Invisible Hand

14 minutes 36 seconds

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Over 200 years ago, a Scottish philosopher named Adam Smith came up with revolutionary ideas about interactions between a buyer and seller in a free enterprise system. He coined the term "invisible hand" to describe the unintended social benefits of voluntary interaction between a buyer and seller in the marketplace. Scholar Johan Norberg visits a bakery in Scotland to witness how supply and demand set prices. He also discusses how the principles of eBay show that economic systems can self-regulate when based on trust and the reputation of sellers.

Media Details

Runtime: 14 minutes 36 seconds

Topic: Biographies, Business, History, Social Science
Subtopic: Economics, Smith, Adam
Grade/Interest Level: 7 - 12
Standards:

Release Year: 2016
Producer/Distributor: izzit.org
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Black and white portrait of Thomas Jefferson. Caption. Among these are Life, Liberty and the pursuit of Happiness.

Woman and man, seated and smiling in front of a white columned monument. Caption. Cows. Sheep?

Still image from: Advanced Placement Human Geography: Making Sense of Planet Earth--Industrialization and Economic Development

Stacked shipping containers, 1 colorfully painted with scenes in foreground. Caption. Chile is a stunning example of what can happen.

Man seated on a stool in a classroom motions across his chest with pointed left index finger while children watch. Sound of bell ringing.

2 teenage boys wearing denim jeans and t-shirts frown and look at money in their hands. Caption. If you exchange to U, S dollars.

Black and white photo of a World War 1 battle ship surrounded by crowds of people and soldiers on deck. Caption. The country went to war in 1917, singing.

2 women standing in a kitchen; 1 holds a telephone, the other has a coffee maker. Caption. Each saw the trade as a benefit to themselves.

Closeup of rice blades, some flowering. Caption. Rice is easily the most important crop.