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- Theories of Economic Developmenteconomics-mcqs › theories-of-economic-development
- Published
- 27 May 2019
- Last updated
- 28 May 2026
What is the overall outcome of Adam Smith's concept of the invisible hand in a competitive market?
Multiple choice question for Theories of Economic Development. Select an option, then review the explanation below.
Explanation
The invisible hand suggests that when each person seeks their own benefit, it unintentionally leads to positive results for society as a whole. This means that individual self-interest drives overall economic benefits, rather than deliberate efforts to promote public welfare or maximize growth.
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- 5.What does the Vicious Circle theory suggest about poverty?