According to Adam Smith, the "invisible hand" will create a situation where
A) Business owners will prefer investing in their own country to investing in foreign countries.
B) Business owners will not care whether they invest at home or abroad.
C) Business owners will prefer to invest in projects that they already invested in before.
D) Business owners will only invest in projects that the King endorses.

Question

Quizplus · Accepted Answer

According to Adam Smith's theory of the invisible hand, individuals pursuing their own self-interest in a free market will unintentionally work towards the common good of society as a whole. Therefore, business owners will prefer investing in their own country as it serves their self-interest, thereby leading to economic growth and development domestically.

According to Adam Smith, the "Invisible Hand" Will Create a Situation