Adam Smith's ________ refers to the process by which individuals acting in their own self-interest bring about a market outcome that benefits society as a whole.
A)Utopian society
B)comparative advantage model
C)invisible hand
D)survival of the fittest theory

Question

Quizplus · Accepted Answer

Adam Smith's concept of the "invisible hand" is the idea that in a free market economy, individuals pursuing their own self-interest will unintentionally promote the well-being of society as a whole. As individuals seek to maximize their own profits, they will produce the goods and services that society demands, and market competition will drive down prices and increase efficiency, leading to an overall increase in wealth and prosperity. This idea is a cornerstone of classical liberal economic theory.

Adam Smith's ________ Refers to the Process by Which Individuals