Question

What did Adam Smith call the notion that people make economic choices that are best for themselves, but that self-interest leads them to do what is best for the society? A. invisible hand B. guided balance C. laissez-faire D. capitalism

Answer 1

The correct answer is A. Invisible hand

Step-by-step explanation:

Adam Smith was a Scottish philosopher and economist mainly known as "The Father of Capitalism" due to his proposal related to economy and capitalism. Indeed in his books "The Theory of Moral Sentiments" published in 1759 and "An Inquiry into the Nature and Causes of the Wealth of Nations" published in 1776 Adam Smith explored multiple concepts including the concept of the "invisible hand", according to Smith the actions of individuals guided by self-interest in economy support the general interests of society especially by working as a force that balance the demand and supply of goods which means individuals indirectly help market and society operate. Considering this, it can be concluded the notion that people make economic choices that are best for themselves, but that self-inters leads them to do what is best for the society is the "invisible hand".

Answer 2

Adam Smith called the notion that people make economic choices that are best for themselves, but that self-interest leads them to do what is best for the society as invisible hand. The correct option among all the options that are given in the question is the first option or option "A". I hope this helps you.