The "invisible hand" in Adam Smith's theory turns self-directed gain into social and economic benefits for all.

Question

Quizplus · Accepted Answer

Adam Smith believed that individuals pursuing their own self-interest in the market would ultimately lead to the greatest benefit for society as a whole. This concept is referred to as the "invisible hand." As individuals seek to maximize their own profits, they are incentivized to provide goods and services that others want, leading to increased competition and innovation, ultimately resulting in overall economic growth and higher living standards for all.

The "Invisible Hand" in Adam Smith's Theory Turns Self-Directed Gain