Adam Smith believed that people's pursuit of their own self-interests:
A)tended to promote general welfare.
B)required the government's "invisible hand" to keep the economy running smoothly.
C)might cause aggregate demand to be greater than aggregate supply.
D)would increase the wealth of a nation,which was the quantity of gold and silver it owned.
E)would decrease the wealth of a nation,which was its ability to produce goods and services.

Question

Quizplus · Accepted Answer

Adam Smith believed that individuals pursuing their own self-interests in a competitive market would lead to greater productivity, innovation, and efficiency. This, in turn, would lead to a general increase in wealth and well-being for society as a whole. Smith called this the "invisible hand" of the market, which would guide individuals to act in ways that ultimately benefited society.

Adam Smith Believed That People's Pursuit of Their Own Self-Interests