In a competitive market economy, ﬁrms and resource suppliers seeking to further their own self-interest
will end up, as though guided by an invisible hand, promoting the public interest.

Question

Quizplus · Accepted Answer

This statement is the main concept behind Adam Smith's theory of the invisible hand in a market economy. The idea is that individuals pursuing their own self-interest will end up benefiting society as a whole because competition will lead to efficient production and allocation of resources.

In a Competitive Market Economy, ﬁRms and Resource Suppliers Seeking