Advertisements
Select Page

Invisible hand

The “Invisible hand” is the notion of the economist Adam Smith that efficient utilisation of resources arises from a free market of individuals pursuing their selfish agendas. The theory of the firm and consumer rationality is grounded in neoclassical economics and capitalism, stemming from the work of the 18th-century moral philosopher Adam Smith, who emphasised that a free-market economy should occur within a legal and ethical framework.

Advertisements