Share
Explore BrainMass

Economics

Discuss what Smith meant by the "invisible hand". What is the mechanism by which selfish interests are made compatible with - indeed, made the agent for - successful social provisioning? How is Smith's growth model related to the market model?

Solution Preview

The response addresses the queries posted in 656 words with references.

//First of all, we will discuss the meaning of invisible hand. The concept of invisible hand is given by Adam Smith, the famous economist. After it, as per the direction, we will discuss the mechanism through which selfish interest are made compatible with successful social provisioning. All the information for this assignment would be provided under the heading essay. For example:

The concept of invisible hand was given by the famous economist Adam Smith in his book 'The Wealth of Nations'. This concept describes that the marketplace has a self regulating nature. According to Smith, this invisible hand is the combination of various forces such as competition, self interest, demand & supply. These forces provide best result to society, as the government doesn't interfere in these regulating forces. It also states that each customer and each producer is free to choose what to buy and what to sell. It causes the market ...

Solution Summary

The response addresses the queries posted in 656 words with references.

$2.19