Cryptocurrency Q&A
What is the invisible hand theory?
What is the invisible hand theory?
Tommaso
Fri Jan 17 2025
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5 answers
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The invisible hand theory, proposed by Adam Smith, suggests that individuals pursuing their own self-interests in a free market economy can unintentionally promote the public interest, as if guided by an invisible hand. This theory highlights the efficiency of the market mechanism in coordinating economic activities without the need for central planning or government intervention.
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5 answers
Michele
Sun Jan 19 2025
It was introduced by the renowned economist Adam Smith.
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Andrea
Sun Jan 19 2025
Smith utilized this metaphor to elucidate the intricate economic forces at play.
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EthereumEmpress
Sun Jan 19 2025
Specifically, the invisible hand signifies the unseen dynamics of self-interest.
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Elena
Sun Jan 19 2025
The invisible hand represents a pivotal concept in economics.
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Valentina
Sun Jan 19 2025
In a free market, consumers driven by self-interest make decisions that inadvertently contribute to the overall health of the economy.
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