The invisible hand is a phrase that expresses the belief that the best interests of a society are served when individual consumers and producers compete to achieve their own private interests. Guided by an invisible hand, producers must compete with one another to win consumers' money. The profit motive in a competitive marketplace provides profits as a reward for efficient producers, while losses punish inefficient producers. What does the phrase 'invisible hand' represent?
1) The belief that individual consumers and producers should work together for the benefit of society
2) The idea that competition between consumers and producers leads to the best outcomes for society
3) The concept that producers must compete with one another to win consumers' money
4) The belief that profits and losses in a competitive marketplace incentivize efficient production