According to Adam Smith
A) government intervention in markets is not desirable because an invisible hand leads decisions made in pursuit of self-interest to unintentionally promote the social interest.
B) politicians are well-equipped to regulate corporations and intervene in markets to improve market outcomes.
C) when big corporations pursue their self-interest of maximum profit, they will inevitably conflict with social interest.
D) in a market transaction buyers can either get what they want for less than they would be willing to pay or sellers can earn a profit, but both buyers and sellers can't gain simultaneously.

Question

Quizplus · Accepted Answer

Adam Smith's concept of the "invisible hand" suggests that individuals' pursuit of self-interest in free markets leads to outcomes that are beneficial for society as a whole, without the need for government intervention.