Adam Smith used the metaphor "invisible hand" to explain that:
A) people always act with the interest of society in the back of their minds.
B) people need a push from the government to do what the government thinks is right.
C) governments always act in the best interest of its citizenry.
D) people acting in their own self interest may actually promote the interest of the society as a whole.

Question

Quizplus · Accepted Answer

Adam Smith's metaphor of the "invisible hand" is that individual self-interest can lead to unintended social benefits. In a market economy, individuals pursue their own interests, such as maximizing profits or minimizing costs, which in turn leads to competition and innovation. This competition and innovation ultimately aim to provide goods and services that benefit society as a whole, as consumers receive higher quality products at lower prices. Smith believed that government intervention should be limited, as the market can regulate itself through the invisible hand.

Adam Smith Used the Metaphor "Invisible Hand" to Explain That