In the Wealth of Nations, Adam Smith argues that:
A)self-interest leads to the efficient allocation of resources.
B)benevolence leads to the efficient allocation of resources.
C)profits are maximized where marginal revenue equals net marginal benefits.
D)none of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

In the Wealth of Nations, Adam Smith argues that self-interest leads to the efficient allocation of resources. He believed that individuals acting in their own self-interest (i.e., seeking to maximize their own profits) would inadvertently help to maximize overall economic benefits by producing goods and services that are in demand, and doing so at the lowest possible cost. This concept is often referred to as the "invisible hand."

In the Wealth of Nations, Adam Smith Argues That