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

Question

Quizplus · Accepted Answer

Adam Smith's metaphor of the "invisible hand" suggests that individuals pursuing their own self-interest in a competitive market will unintentionally promote the economic interests of society as a whole by leading to greater innovation, efficiency, and productivity. The government's role in this view is limited to ensuring basic legal frameworks and protection of property rights. Option B suggests a government-centric view, while Option C assumes a certain level of altruism that is not necessarily present in Smith's framework. Option D is too general and not necessarily reflective of the complexities of economic theory.

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