The idea that the desires of resource suppliers and producers to further their own self-interest will automatically further the public interest is known as:
A)consumer sovereignty.
B)the invisible hand.
C)derived demand.
D)profit maximization.

Question

Quizplus · Accepted Answer

The concept of the "invisible hand" was introduced by Adam Smith and refers to the idea that when individuals pursue their own self-interest in a free market, it results in a beneficial outcome for society as a whole. This is predicated on the assumption of perfect competition and no externalities, but the invisible hand is often cited as a justification for laissez-faire economic policies.

The Idea That the Desires of Resource Suppliers and Producers