Even though participants in the economy are motivated by self-interest, the "invisible hand" of the marketplace guides this self-interest into promoting general economic well-being.

Question

Quizplus · Accepted Answer

Adam Smith introduced the concept of the "invisible hand," suggesting that individuals' pursuit of their own self-interest inadvertently benefits society as a whole, as they produce goods and services that are in demand, leading to efficient allocation of resources and overall economic well-being.

Even Though Participants in the Economy Are Motivated by Self-Interest