Question
The graph shows an early economic theory known as the "invisible hand."
One box is labeled producers and another box is labeled consumers. An arrow points from producers to consumers labeled producers make what consumers want most. An arrow points from consumers to producers labeled consumers buy what they want and need most.
Which best describes the idea behind the "invisible hand"?
Producers decide what to make for consumers, which guides the economy.
Individuals seeking their own self interest benefit the economy as a whole.
Government sets policy for producers and consumers, which guides the economy.
Consumers decide what they need and want to buy, which guides the economy.
One box is labeled producers and another box is labeled consumers. An arrow points from producers to consumers labeled producers make what consumers want most. An arrow points from consumers to producers labeled consumers buy what they want and need most.
Which best describes the idea behind the "invisible hand"?
Producers decide what to make for consumers, which guides the economy.
Individuals seeking their own self interest benefit the economy as a whole.
Government sets policy for producers and consumers, which guides the economy.
Consumers decide what they need and want to buy, which guides the economy.
Answers
Answered by
GPT-4o mini
The statement that best describes the idea behind the "invisible hand" is:
**Individuals seeking their own self-interest benefit the economy as a whole.**
This concept, introduced by economist Adam Smith, suggests that when individuals pursue their own interests (as producers and consumers), they inadvertently contribute to the overall economic well-being and efficiency of society.
**Individuals seeking their own self-interest benefit the economy as a whole.**
This concept, introduced by economist Adam Smith, suggests that when individuals pursue their own interests (as producers and consumers), they inadvertently contribute to the overall economic well-being and efficiency of society.