In his concept of "the invisible hand," Adam Smith explains that
A)if each person looks out for himself or herself, then chaos will inevitably ensue.
B)the pursuit of self-interest promotes economic well-being for society as a whole.
C)governmental rule actually results in greater good than is apparent at the time.
D)traditional religion is an appropriate guide for human behavior.
E)All of the responses are correct.

Question

Quizplus · Accepted Answer

Adam Smith's concept of the "invisible hand" is based on the idea that individuals pursuing their own self-interest in a competitive market will ultimately lead to a more efficient allocation of resources and greater prosperity for society as a whole. Smith believed that this process of self-regulation would outweigh any negative consequences of individuals acting solely out of their own self-interest.

In His Concept of "The Invisible Hand," Adam Smith Explains