Final answer:
The invisible hand theory predicates that individual self-interest naturally promotes societal benefits in economic terms. The correct answer is option 2.
Step-by-step explanation:
The invisible hand theory suggests that individuals' pursuit of self-interest in economic activities leads to positive societal outcomes without intentional coordination. It implies that the complex processes of supply and demand are regulated naturally through this invisible hand, which guides the market towards efficiency.
David Hume's "specie-flow doctrine" illustrates invisible hand theory by explaining how international trade imbalances self-correct via the flow of gold and silver. When a country has a trade surplus, it receives gold/silver, resulting in price inflation and higher costs for exports, thereby restoring the balance through decreased demand.
Self-interest and the "invisible hand" of Adam Smith encompasses the idea that individuals working for their own gain unknowingly benefit society by providing goods and services that are in demand. Through the pursuit of profit, businesses must cater to consumers' needs, hence inadvertently contributing to the overall economic well-being.
Marx's "crisis theory", though contrasting with capitalist views, can be connected to the invisible hand in the sense that the inherent contradictions of capitalism would lead to its own demise and possibly give way to a different social order. This crisis could unfold naturally as a result of the system's internal dynamics, much like an invisible hand leading to an unintended equilibrium.