which of the following concepts is most closely associated with the writings of Adam smith in the wealth of nations
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Step 1: Identify the author and work — Adam Smith, The Wealth of Nations (1776). Show more…
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According to Adam Smith's work, which of the following describes the invisible hand
Benjamin D.
Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, 1776 "But man has almost constant occasion for the help of his brethren, and it is in vain for him to expect it from their benevolence only. He will be more likely to prevail if he can interest their self-love in his favor and show them that it is for their own advantage to do for him what he requires of them. Whoever offers to another a bargain of any kind proposes to do this. Give me that which I want, and you shall have this which you want, is the meaning of every such offer, and it is in this manner that we obtain from one another the far greater part of those good offices which we stand in need of. It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest. We address ourselves not to their humanity but to their self-love and never talk to them of our own necessities but of their advantages." (Book I, Chapter II, p. 191.) What does this mean to you? "As every individual, therefore, endeavors as much as he can both to employ his capital in the support of domestic industry and to direct that industry so that its produce may be of the greatest value, every individual necessarily labors to render the annual revenue of the society as great as he can. He generally, indeed, neither intends to promote the public interest nor knows how much he is promoting it. By preferring the support of domestic to that of foreign industry, he intends only his own security, and by directing that industry in such a manner that its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was no part of it. By pursuing his own interest, he frequently promotes that of the society more effectively than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good. It is an affectation, indeed, not very common among merchants, and very few words need be employed in dissuading them from it." (Book IV, Chapter II, p. 488-489)
Crystal W.
Adam Smith wrote that the a. economic problems of eighteenth-century England were caused by free markets. b. government should control the economy with an “invisible hand." c. pursuit of private self interest promotes the public interest in a market economy. d. public or collective interest is not promoted by people pursuing their self interest.
Jennifer S.
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