Don’t understand Amani Medina 12/8/21What is self-interest? What is the “invisible hand?"Adam Smith believed that individuals should be free to pursue their own economic self-interest[things that will bring you personal gain or benefit]. Through pursuing their own self-interest, Smithbelieved that all of society would benefit. Smith argued that people would make things that feedtheir self-interests of increasing their wealth and profit such as a coat maker who makes coats.Even though he is making coats out of self-interest or a selfish desire for profit, Smith argued thatthis would still benefit the rest of society because people need coats and are willing to pay_forthem. Smith believed an economy like this should work smoothly and efficiently without anygovernment interference, as if guided and organized by an invisible hand. The invisible hand is ametaphor for a şelf-regulating economy where people get what they need by pursuing their ownself-interests.1. According to Adam Smith, how does allowing people to freely pursue their self-interest benefitsociety?

Self-interest: It refers to a situation under which the people will think more about their own…

Answered: 1. According to Adam Smith, how does…

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1. According to Adam Smith, how does allowing people to freely pursue their self-interest benefit society?

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter6: Population Health

Section: Chapter Questions

Problem 8QAP

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