Question

Which best describes how individuals help the economy grow? they work in their own self-interest. they work as part of a unified group. they work to influence the money supply. they work to influence the economy?

Answer 1

The correct answer on edenuity is A, they work in their own self interest!

Answer 2

Answer:

Individuals help the economy grow by working in their own self-interest.  When individuals, organisations, and nations interact with others, they work in their self-interests.  They work to benefit themselves.  But they are pursuing their self-interests, they inadvertently benefit the world's economies.

This self-interest propels individuals to grow the economy while they are enriching themselves.

Adam Smith, the father of economics, was the first to explain this concept of self-interest and how it benefits the economy.  He called it the "invisible hand." According to him, the invisible hand is "the idea that when parties act or interact, making decisions based on self-interest, unintended benefits are produced for society at large."

Explanation:

Self-interest implies that while individual parties interact and work to satisfy their self-interests, they unintentionally produce goods and services that enrich the economy.

Many economists have collaborated this self-interest concept.  And we can see it in operation in our daily lives.

For example, the Bill Gates of this world did not initiate the modern revolution that personal computers have brought to the world, because they were so caring for the world's welfare.  They were pursuing their own benefits.  But in the process, the world has benefited largely from their innovative products.  Many aspects of life have been positively impacted to the extent that one cannot even dream of doing away with or without their products.