Question

Adam Smith coined the term "invisible hand" to mean: a. a metaphorical hand that leads individuals to promote self-interest by pursuing social interest. b. a metaphorical hand that leads individuals to promote social interest by pursuing self-interest. c. a physical hand that leads individuals to promote social interest by pursuing self-interest. d. a physical hand that leads individuals to promote self-interest by pursuing social interest.

Answer 1

Answer: B

Explanation: Adam Smith's theory of an invisible hand is a metaphor and therefore has nothing to do with a physical hand. In it self it's a theory that shows how in a free market economy, individuals with self-interest operating through a system of mutual interdependence, promotes the general benefit and good of society, mostly without any idea of the larger effect of their self-interested actions. A metaphorical hand that leads individuals to promote social interest by pursuing self-interest, option B, is therefore correct.