A young couple living in rural west-central Missouri heard about the closing of a local grocery store. Although a small operation, it served a small community that would now have to travel another 20 miles to the nearest grocery store. With help from a local realtor and banker, the couple purchased the store, remodeled it, and re-opened it. As new storeowners, they had to carefully watch cash flow. As their customer base began to grow, they began offering hot food, and hired others to help with the operation. The economic benefit created in this story is called:

Question

Quizplus · Accepted Answer

The economic benefit created in this story is an example of the concept of the "invisible hand" in economics - the idea that individuals' pursuit of their own self-interest in a free market system can lead to positive outcomes for society as a whole, without any deliberate intervention or control from the government or other external actors. The entrepreneurs in this story were able to identify a need in their community, take advantage of a business opportunity, and create jobs and economic activity in the process. This is an example of how free markets can encourage innovation, drive economic growth, and benefit local communities.

A Young Couple Living in Rural West-Central Missouri Heard About