When people act in their self-interest, what typically happens in a market system, according to Adam Smith?
A) They help only themselves.
B) They harm others.
C) They help others, but not as much as they would have if they were not self-interested.
D) They help others even more than when they seek to help others.

Question

Quizplus · Accepted Answer

Adam Smith argued that when individuals act in their self-interest within a market system, they often end up benefiting others even more than if they had directly intended to do so. This is encapsulated in his concept of the "invisible hand," where individuals' pursuit of their own interests leads to positive outcomes for society as a whole.

When People Act in Their Self-Interest, What Typically Happens in a Market