The concept of "an invisible hand" led Adam Smith to believe that
A)if each person looks out for himself or herself, then chaos will inevitably ensue.
B)pursuit of self-interest promotes economic well-being for society as a whole.
C)governmental rule actually results in greater good than is apparent at the time.
D)traditional religion is an appropriate guide for human behavior.
E)All of the above are correct.

Question

Quizplus · Accepted Answer

The concept of an "invisible hand" suggests that individuals pursuing their own self-interest in a market economy will ultimately benefit society as a whole, as if guided by an invisible hand. Smith believed that the pursuit of profit by individuals would ultimately lead to increased production, innovation, and economic growth, which would benefit not just the individuals themselves but also the broader society.

The Concept of "An Invisible Hand" Led Adam Smith to Believe