What is meant by Adam Smith's idea of the "invisible hand"?
A) Individuals' efforts to pursue their own interest may indirectly benefit society and the people in that society.
B) Instructing individuals to act in a way that benefits society will produce benefits for the individuals themselves.
C) In order for society to be productive, individuals must be guided by a government's laws.
D) A competitive economy will provide the least amount of benefit for society.

Question

Quizplus · Accepted Answer

Adam Smith's idea of the "invisible hand" suggests that if individuals pursue their own self-interest in a competitive market, the market will naturally regulate itself and indirectly benefit society as a whole. The idea is that individuals seeking profit and success will be motivated to produce goods and services that others desire, which will ultimately benefit society by providing for its needs and wants. This is why the term "invisible hand" is used, as it is a force that is not directly visible or tangible, but rather operates indirectly through the actions of individuals in the market.

What Is Meant by Adam Smith's Idea of the "Invisible