Question

Which of the following best defines Adam smith’s idea of the invisible hand

Answer 1

Adam Smith's idea of the invisible hand refers to the concept that in a free market economy, individual self-interest and competition ultimately lead to the overall benefit of society. According to Smith, individuals acting in their own self-interest are guided by an "invisible hand" to produce goods and services that are most in demand by society, as they seek to maximize their profits. This self-regulating mechanism ensures efficient allocation of resources and optimal economic outcomes without the need for central planning or government intervention.