Adam Smith believed that countries would prosper if businesspeople were free to start and run their own businesses,because business people would make a profit by providing the goods,services and ideas that others in the economy wanted.This was called the:
A)kinked demand theory.
B)demand accelerator.
C)invisible hand.
D)spending multiplier.

Question

Quizplus · Accepted Answer

Adam Smith's concept of the "invisible hand" argues that the pursuit of self-interest by individuals in a free market economy ultimately leads to beneficial outcomes for society as a whole. This is because as individuals seek to maximize their own profits, they are naturally incentivized to produce goods and services that others want and need, and competition helps to keep prices low and quality high. By allowing businesspeople to operate freely, Smith believed that they would be able to respond to the needs and wants of consumers, leading to increased prosperity for all.

Adam Smith Believed That Countries Would Prosper If Businesspeople Were