The invisible hand refers to the coordination that occurs from:
A) everyone working in his or her own self-interest.
B) a government agency finding efficiencies.
C) everyone working for the overall good of society.
D) a government coordinating economic activity.

Question

Quizplus · Accepted Answer

The invisible hand theory, popularized by economist Adam Smith, states that individuals acting in their own self-interest will unintentionally promote societal welfare. The invisible hand refers to the self-regulating nature of the market economy, in which individuals and firms pursuing their own interests will ultimately lead to the efficient allocation of resources and the overall good of society.

The Invisible Hand Refers to the Coordination That Occurs From