What does Adam Smith's "invisible hand" explain?
A) why people act in their own best interests
B) why the government intervenes to overcome failures in private markets
C) how people, acting out of self-interest, unintentionally promote the general good
D) how comparative advantage and specialization promote international trade

Question

What does Adam Smith's "invisible hand" explain?  
A) why people act in their own best interests 
B) why the government intervenes to overcome failures in private markets 
C) how people, acting out of self-interest, unintentionally promote the general good 
D) how comparative advantage and specialization promote international trade

Quizplus · Accepted Answer

Adam Smith's "invisible hand" explains how people, acting out of self-interest, unintentionally promote the general good.

What Does Adam Smith's "Invisible Hand" Explain