Question

“It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.”- Adam Smith Wealth of Nations

Which statement best reflects the economic ideas of this thinker?

Answer 1

That individuals, pursuing their own self‑interest within competitive markets, will—via the "invisible hand" of prices—produce outcomes that are beneficial and efficient for society, so economic activity is best organized by free markets with only a limited government role.