What Is the Invisible Hand in Economics?
Smith wrote that we expect dinner from their regard to their own interest.
Video coming soon. The lesson video will appear here once it is published on YouTube.
Check yourself: sample questions
Think about each question, pick what you would answer if you like, then select “Show answer” to see the solution and why. Nothing is graded or sent to us. Example numbers are worked examples, not predictions.
1.What does the invisible hand in economics mean, as the video puts it?
Smith wrote that we expect dinner from their regard to their own interest.
2.In how many of his works did Smith use the words invisible hand, per Rothschild?
One use was in an essay on astronomy, one in the Theory of Moral Sentiments of 1759, and one in The Wealth of Nations.
3.In The Wealth of Nations, who is described as led by an invisible hand?
He wrote it is not always the worse for society that it was no part of his intention.
Full course: 5 more questions for this lesson
The full course unlocks all self-check questions of all 365 lessons, the daily plan, your progress and the printable learning record. Lessons 1 to 7 are completely free.
See the full course Start the free week
Already bought? Open the course on this device
Sources (5)
- Smith, A.: An Inquiry into the Nature and Causes of the Wealth of Nations (1776), Book I Ch. II
- Rothschild, E.: Adam Smith and the Invisible Hand, American Economic Review 84(2), Papers and Proceedings, May 1994, S. 319-322
- University of Pittsburgh, Econ 2100, Fall 2018: Lecture 17, First Welfare Theorem (Vorlesungsfolien)
- Greenwald, B., Stiglitz, J.: Externalities in Economies with Imperfect Information and Incomplete Markets, Quarterly Journal of Economics 101(2), 1986, S. 229-264
- Eigene Rechnung: Zwei Baeckereien
Education only. Not financial advice.