Reported 2 days ago
The invisible hand, a concept introduced by economist Adam Smith, describes how individual self-interest in free markets can lead to overall economic benefits without central planning. By guiding supply and demand, individual actions inadvertently align with market needs, resulting in efficient resource allocation and innovation. However, the concept has limitations, including neglecting externalities, market failures, and inequalities, highlighting the importance of understanding its implications in modern economic theories and investment strategies.
Source: YAHOO