Question

Every individual is continually exerting himself to find out the most advantageous employment for whatever capital he can command. It is his own advantage, indeed, and not that of the society which he has in view. But the study of his own advantage naturally leads him to prefer that employment which is most advantageous to the society.

Read the quotation by Adam Smith.

According to Adam Smith, how does self-interest benefit society?

It causes people to seek out high-paying jobs.
It encourages people to be more benevolent.
It causes people to behave more cautiously.
It encourages employers to pay high wages.

Answer 1

It causes people to seek out high-paying jobs.

Explanation: Smith argues that by pursuing their own advantage (seeking the most advantageous employment), individuals unintentionally choose occupations that are also most advantageous to society — the "invisible hand" aligning private gain with public benefit.