Question

This excerpt is from The Wealth of Nations by Adam Smith.

“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 self-interest.”

Which statement best explains Smith’s point?

A. Businesses acting in their own interests expect something in return for their services.
B. Businesses acting in their own interests give away goods in hopes that consumers will return.
C. Businesses such as butchers, brewers, and bakers are kind hearted and help feed people dinner.
D. Businesses give away their products but want money for the services they provide.

Answer 1

The best choice would be A, my bruh.

Answer 2

The first alternative is correct (A).

The man for Adam Smith is naturally selfish and always seeks to satiate his own interests. However, for Smith this is economically positive. When the social group seeks to maximize its interests, the economy is stimulated through the exchange and sale of goods in a market where everyone wants to obtain benefits. That is why Smith maintains that it is not of the benevolence of the butcher that we have our dinner, but rather because the butcher has the ambition to profit, and therefore provides the meat. When all individuals act together for their ambitions, society gains through the supply and consumption of products. This is the mechanism called the "invisible hand" by Adam Smith.