Who is credited with creating the concept of the "invisible hand" in economics?

Who is credited with creating the concept of the "invisible hand" in economics?

• A. Milton Friedman
• B. John Maynard Keynes
• C. Adam Smith
• D. Carl Marx

Answer: (C)

The concept of the "invisible hand" is attributed to Adam Smith, an 18th-century economist and philosopher known for his foundational work in classical economics. In his seminal book, "The Wealth of Nations," published in 1776, Smith describes how individuals pursuing their own self-interest in a free market can inadvertently contribute to the overall economic well-being of society. This metaphor illustrates how personal motivations can align with broader societal benefits, promoting efficient allocation of resources without the need for centralized planning or intervention. Smith's ideas have had a profound impact on economic theory and the development of capitalism, establishing principles that remain relevant in discussions about market dynamics and the role of individual agency in economic systems. The concept of the "invisible hand" emphasizes the cooperative outcomes that can arise from individual actions, which is a cornerstone of free-market economics.

The concept of the "invisible hand" is attributed to Adam Smith, an 18th-century economist and philosopher known for his foundational work in classical economics. In his seminal book, "The Wealth of Nations," published in 1776, Smith describes how individuals pursuing their own self-interest in a free market can inadvertently contribute to the overall economic well-being of society. This metaphor illustrates how personal motivations can align with broader societal benefits, promoting efficient allocation of resources without the need for centralized planning or intervention.

Smith's ideas have had a profound impact on economic theory and the development of capitalism, establishing principles that remain relevant in discussions about market dynamics and the role of individual agency in economic systems. The concept of the "invisible hand" emphasizes the cooperative outcomes that can arise from individual actions, which is a cornerstone of free-market economics.