Adam Smith's idea of the "invisible hand" says that given a country's resources and its initial distribution of wealth,the use of markets will
A)insulate a nation from the effects of political instability.
B)eliminate problems of hunger and dissatisfaction.
C)eliminate inequalities between the rich and the poor.
D)make people as economically well off as possible.

Question

Quizplus · Accepted Answer

Adam Smith's idea of the "invisible hand" suggests that the pursuit of self-interest by individuals and businesses in a competitive market will lead to the most efficient use of resources and the greatest economic benefits for society as a whole. This does not necessarily eliminate inequalities or address issues of hunger and dissatisfaction, but rather aims to make people as economically well-off as possible given the country's resources and initial distribution of wealth.

Adam Smith's Idea of the "Invisible Hand" Says That Given