An insight first fully developed by Adam Smith is that
A)individual self- interest is the only necessary force for social order.
B)self- interest,not benevolence,is the foundation of economic order.
C)self- interest undermines effective economic order.
D)without benevolence production would not occur.
E)all individuals are motivated solely by self- interest.

Question

Quizplus · Accepted Answer

Adam Smith believed that individuals pursuing their own self-interest in a free market system would lead to economic prosperity and growth. He argued that the pursuit of profit incentivized individuals to innovate, invest in capital, and produce goods and services demanded by consumers. This insight is known as the "invisible hand" and is a cornerstone of classical economics. However, Smith did not believe that individuals were solely motivated by self-interest and recognized the importance of benevolence and moral values in society.

An Insight First Fully Developed by Adam Smith Is That