The concept of the "invisible hand" in economics as described by Adam Smith states that:
A) all our actions are coordinated by the desires of a benevolent dictator.
B) the selfish pursuit of profit leads to consumers getting more of what they want.
C) magicians are the only agents who have purely economic motives.
D) our efforts to help out neighbors are not economic activity.

Question

Quizplus · Accepted Answer

Adam Smith's concept of the "invisible hand" suggests that individuals' pursuit of their own self-interest inadvertently benefits society as a whole, particularly through the efficient allocation of resources and the production of goods and services that consumers demand. This is because, in a free market, producers seeking to maximize their profits will produce what consumers desire, leading to a natural equilibrium where supply meets demand.

The Concept of the "Invisible Hand" in Economics as Described