Question

What is 'Invisible Hand'?

Hint:

The Invisible Hand suggests that economic prosperity is often the result of individuals seeking to maximize their own benefit, inadvertently benefiting society as a whole.

Answer 1

Step 1: Understanding the Invisible Hand.
The term "Invisible Hand" was coined by economist Adam Smith. It refers to the self-regulating nature of a free market economy. In this system, individuals pursuing their own self-interest unintentionally contribute to the overall economic well-being of society through the production of goods and services that others need.

Step 2: Conclusion.
Thus, the "Invisible Hand" concept explains how individual actions in a market economy, driven by self-interest, can lead to positive social outcomes.