Adam Smith's Metaphor of the "Invisible Hand" Refers to the Notion

question 213

Multiple Choice

Adam Smith's metaphor of the "invisible hand" refers to the notion that:

• A) greed is always good when externally motivated.
• B) behavior based on self-interest can lead to an overall benefit to society.
• C) market incentive can lead to negative side effects.
• D) markets always align self-interest with social interest.

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Definitions:

Evolutionary Perspective

A viewpoint that examines human thoughts, feelings, and behaviors through the lens of natural selection and adaptation.

Behavioral Perspective

A view in psychology that focuses on observable behaviors and the ways they are learned through interaction with the environment.

Psychodynamic Perspective

an approach in psychology which emphasizes the role of unconscious processes and childhood experiences in shaping behavior and personality.

Naturalistic Observation

A research method whereby subjects are observed in their natural habitats without any manipulation by the observer.