Which of the following best describes the "invisible hand" concept?
A)The desires of resource suppliers and producers to further their own self-interest will automatically further the public interest.
B)The non substitutability of resources gives rise to a conflict between private and public interests and the need for government intervention.
C)Mixed capitalism is the best system for overcoming the scarce resources-unlimited wants problem.
D)Central direction by the government will improve resource allocation in a capitalistic economy.

Question

Quizplus · Accepted Answer

The concept of the "invisible hand" suggests that, in a free market, self-interested individuals will act in a way that promotes the public interest without intending to do so. This is because the pursuit of their own interests will drive them to produce goods and services that others want and need, thereby benefiting society as a whole.

Which of the Following Best Describes the "Invisible Hand" Concept