![]() ![]() The invisible hand is a theory of economics that refers to the self-regulating nature of the marketplace in determining how resources are allocated based on individuals acting in their own self-interest.īeside above, what does Adam Smith's metaphor of the invisible hand illustrate? Invisible hand, metaphor, introduced by the 18th-century Scottish philosopher and economist Adam Smith, that characterizes the mechanisms through which beneficial social and economic outcomes may arise from the accumulated self-interested actions of individuals, none of whom intends to bring about such outcomes.Ĭonsidering this, what does Adam Smith's idea of an invisible hand represent quizlet? For Smith, the Invisible hand was created by the conjunction of the forces of self-interest, competition, and supply and demand, which he noted as being capable of allocating resources in society.Īlso to know is, what did the invisible hand mean? In economics, the Invisible hand is the term economists use to describe the self- regulating nature of the marketplace. ![]()
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