Adam Smith argued that each person in a competitive market is led to promote the
A) efficient use of society's resources, because each person's intention is to make society better off.
B) efficient use of society's resources, even though it is no person's intention to make society better off.
C) inefficient use of society's resources, even though each person's intention is 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's concept of the "invisible hand" suggests that individuals pursuing their own self-interest in a competitive market unintentionally contribute to the efficient allocation of resources, benefiting society as a whole.

Adam Smith Argued That Each Person in a Competitive Market