The idea of the "invisible hand" tells us that individuals will pursue:
A) mutually beneficial trades with other individuals to maximize surplus.
B) trades in which they will be the clear winner and the other will be a loser.
C) the most equitable outcome possible.
D) as few government policies as possible so the market can act freely.

Question

Quizplus · Accepted Answer

The concept of the "invisible hand" refers to the idea that individuals, by pursuing their own self-interest, will unintentionally promote the well-being of society as a whole, primarily through mutually beneficial trades that maximize surplus. This idea is a central premise of free market economics.

The Idea of the "Invisible Hand" Tells Us That Individuals