Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 2 - The Market System and the Circular Flow - Discussion Questions - Page 49: 9


The invisible hand is the term used to define the operation in a market where self-interested motives of individuals benefit the social interest of the society.

Work Step by Step

Adam Smith uses the invisible hand to explain the mechanism of social benefits obtained by the actions of self-interested buyers and sellers in the market.
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