Adam Smith\'s \'invisible hand principle\' stresses a. that benevolence is the p

Question

Adam Smith's 'invisible hand principle' stresses

a. that benevolence is the primary motivator that encourages individuals to engage in productive activity.

b. the tendency of the decentralized competitive market process to direct self-interested individuals towards activities that enhance the overall economic welfare of society.

c. the potential of central planning and dictatorship as a means of bringing the self-interest of individuals into harmony with the overall economic welfare of society.

d. the tendency of self-interested individuals to pursue activities that only benefit themselves and harm the overall economic welfare of society.

Explanation / Answer

b. the tendency of the decentralized competitive market process to direct self-interested individuals towards activities that enhance the overall economic welfare of society.

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