Adam Smith's invisible hand principle stresses
A) that benevolence is a powerful motivator that encourages individuals to engage in productive economic activity.
B) the tendency of the competitive market process to direct self-interested individuals into activities that enhance the economic welfare of society.
C) the potential of government regulation as a means of bringing the self interest of individuals into harmony with the economic welfare of society.
D) the tendency of self-interested individuals to pursue activities that benefit themselves but harm the overall economic welfare of society.

Question

Quizplus · Accepted Answer

The invisible hand principle suggests that individuals pursuing their own self-interest in a competitive market can unintentionally contribute to the overall economic welfare of society, as if guided by an invisible hand.

Adam Smith's Invisible Hand Principle Stresses