The Market as a Social Institution

The Market as a Social Institution

Question

What is meant by the phrase "invisible hand"?

Answer

It refers to some sort of an unseen force at work that converts what is good for each individual into what is good for society. Interest of society is looked after automatically when individual interest is looked after maintaining judiciously. E.g. Sanitation in and around one's own home, protects ipso-facto the whole colony from mosquito-bite and malaria.

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