Question

used the metaphor of the "invisible hand" to: Describe the appropriate, limited role of government Describe the benefits of free trade Describe how the individual pursuit of self-interest works to promote the interest of the public as a whole Describe how the profit motive undermines individuals' incentives to contribute to society Who would agree that "the best government is that which governs least"? Both Adam Smith and Karl Marx Neither Adam Smith nor Karl Marx Karl Marx Adam Smith

Answer 1

Answer:

Adam Smith created it, Karl Marx rejected it. The invisible hand was a metaphor created by Adam Smith in 1776, to symbolized that each individual pursuing their own welfare, without notice and in the best possible way, was contributing to the social welfare.

Explanation:

This phenomenon is explained because when each individual uses their talent in the best way to provide goods and services, the society its getting those goods and services in the most productive way possible. This idea was rejected by Karl Marx 100 years later (1863 circa), by saying the "invisible hand" was an idea created by the dominant class to justify the exploitation of the working class, and the welfare surplus was not equally shared among the owner of the factory and workers. Hence, this could not be the best solution for society.