Which of the following best describes the "invisible hand" concept?
A) Ample regulation of business by the government will maximize the public's best interests.
B) The market system works best when resources are free to move from one use to another.
C) The problem of scarcity can best be overcome in a system of mixed capitalism.
D) Self-interest in a market system will automatically promote the public interest as well.

Question

Quizplus · Accepted Answer

The concept of the "invisible hand" is that individuals pursuing their own self-interest in a market system will ultimately lead to benefits for society as a whole. This idea was popularized by economist Adam Smith in his book "The Wealth of Nations." Option D best describes this concept. Option A argues for ample regulation of business by the government, which is not in line with the "invisible hand" concept. Option B describes the importance of resource allocation in a market system, but does not specifically address the "invisible hand." Option C refers to a system of mixed capitalism, which is not directly related to the "invisible hand."

Which of the Following Best Describes the "Invisible Hand" Concept