Adam Smith's invisible hand refers to
A)the government's unobtrusive role in ensuring that the economy functions efficiently.
B)property ownership laws and the rule of the court system.
C)the process by which individuals acting in their own self-interest bring about a market outcome that benefits society as a whole.
D)the laws of nature that influence economics decisions.

Question

Quizplus · Accepted Answer

Adam Smith's invisible hand refers to the idea that when individuals act in their own self-interest in a competitive market, they unintentionally promote the good of society as a whole. This occurs because the pursuit of individual profit leads to increased productivity, demand, and innovation, thus driving economic growth and benefiting society as a whole. This concept suggests that markets are self-regulating and do not require extensive government intervention.

Adam Smith's Invisible Hand Refers to