The idea that firms and resource suppliers,while seeking to further their own self-interests in a market economy,also promote the public interest describes:
A) the guiding function of prices.
B) capital accumulation.
C) the "invisible hand."
D) "dollar votes."

Question

Quizplus · Accepted Answer

The concept of the "invisible hand" was first introduced by Adam Smith in his book "The Wealth of Nations." It refers to the idea that in a market economy, individuals and firms acting in their own self-interest will indirectly promote the public interest by producing goods and services that people want, and by doing so in a way that is efficient and innovative. This is because competition between firms will lead to lower prices and improved quality, and the pursuit of profits will encourage firms to invest in new technologies and processes, which will benefit society as a whole.

The Idea That Firms and Resource Suppliers,while Seeking to Further