Question

Adam Smith's invisible hand principle stresses the tendency of

a. government regulation in the economy
b. centralized economic planning
c. individual self-interest benefiting society as a whole
d. charity and philanthropy driving economic progress

Answer 1

The invisible hand refers to the unseen forces that regulate the market and economy, and it suggests that individual self-interest can benefit society as a whole.

Step-by-step explanation:

The invisible hand refers to the unseen forces that regulate the market and economy. According to Adam Smith's principle, individual self-interest, or selfish actions, can unintentionally lead to benefits for society as a whole. Smith argued that when individuals make rational choices to maximize their own profit, they inadvertently contribute to producing goods and services that are most needed by society.