The idea that the desires of resource suppliers and ﬁrms to further their own self-interest will automatically further the public interest is known as
A) consumer sovereignty.
B) the invisible hand.
C) derived demand.
D) creative destruction.

Question

Quizplus · Accepted Answer

The idea that the desires of resource suppliers and firms to further their own self-interest will automatically further the public interest is known as the invisible hand. This concept was introduced by Adam Smith in his famous book "The Wealth of Nations." According to Smith, when individuals or firms act in their self-interest, the market will automatically allocate resources efficiently, leading to the overall benefit of society.

The Idea That the Desires of Resource Suppliers and ﬁRms