Which of the following most accurately describes the invisible hand concept?
A) Wise central planning by government is necessary for the efficient use of resources.
B) In a democratic setting, majority rule will result in the efficient use of resources.
C) In a market setting, when individuals pursue their own interests, they simultaneously tend to promote the public interest.
D) In a market setting, when individuals pursue their own interests, they tend to engage in activities that lower the overall economic welfare of society.

Question

Quizplus · Accepted Answer

The invisible hand concept, introduced by Adam Smith, suggests that individuals pursuing their own self-interest in a free market can lead to positive outcomes for society as a whole, as if guided by an "invisible hand."

Which of the Following Most Accurately Describes the Invisible Hand