Adam Smith formulated the invisible hand and the free market to explain the motivation for individual behaviors. The invisible hand refers to:
A)the variables within an individual that lead to motivation and behavior.
B)the desire to influence others, the urge to change people or events, and the wish to make a difference in life.
C)the work conditions related to satisfaction of the need for psychological growth.
D)the unseen forces of a system that shape the most efficient use of people, money, and resources for productive ends.

Question

Quizplus · Accepted Answer

The invisible hand is a metaphor used by Adam Smith to describe the unintended social benefits of individual self-interested actions. This concept suggests that in a free market, an individual pursuing their own self-interest tends to also promote the good of their community through a principle that operates as if an invisible hand guides their actions towards outcomes that are beneficial to the society as a whole.

Adam Smith Formulated the Invisible Hand and the Free Market