The idea that firms and resource suppliers in seeking to further their own self-interests in a competitive market economy also simultaneously promotes the public or social interest is a description of:
A)the guiding function of prices.
B)capital accumulation.
C)the "invisible hand."
D)dollar votes.

Question

Quizplus · Accepted Answer

The description given in the question is commonly referred to as the concept of the "invisible hand," which suggests that individual self-interest, when left to operate freely in a competitive market economy, will ultimately work to promote the overall social interest or common good. This idea was popularized by the economist Adam Smith in his seminal work, "The Wealth of Nations."

The Idea That Firms and Resource Suppliers in Seeking to Further