Each person goes about her daily business seeking to maximise her own self-interests. In doing so, she contributes to the welfare of society at large. This is the idea underlying Adam Smith's 'invisible hand'.

Question

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This statement accurately represents the concept of the invisible hand in economic theory. Adam Smith believed that individuals pursuing their own self-interests in a free market would lead to a greater overall benefit for society, as competition and the pursuit of profit would drive innovation and efficiency.

Each Person Goes About Her Daily Business Seeking to Maximise