Adam Smith argued that each person in a competitive market is led to promote the
A) inefficient use of society's resources, even though each person's intention is to make society better off.
B) efficient use of society's resources, because each person's intention is to make society better off.
C) efficient use of society's resources, even though it is no person's intention to make society better off.
D) inefficient use of society's resources, because it is no person's intention to make society better off.

Question

Quizplus · Accepted Answer

Adam Smith argued that in a competitive market, individuals pursuing their own self-interest inadvertently contribute to the efficient allocation of resources in society as a whole, a concept he famously described using the metaphor of the "invisible hand." This process occurs even though these individuals do not intend to promote the public good.

Adam Smith Argued That Each Person in a Competitive Market