Which best describes the "invisible hand" concept?
A) Highly detailed central direction of an economy will maximize the public's best interests.
B) The market system works best when resources are highly substitutable.
C) The problem of scarcity can best be overcome in a system of mixed capitalism.
D) The desires of producers and resource suppliers to further their own self-interest will tend to promote the social interest.

Question

Quizplus · Accepted Answer

The "invisible hand" concept refers to the idea that in a free market economy, the self-interested actions of producers and resource suppliers will tend to promote the social interest. This means that individuals working to maximize their own profits will inadvertently contribute to the overall wellbeing of society, as their actions create incentives for efficiency, innovation, and production of goods and services that meet the needs and wants of consumers.

Which Best Describes the "Invisible Hand" Concept