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# Invisible Hand Mechanism

## Definition

The unintended social benefits that arise when individuals pursue their own self-interest in economic activities. This natural market mechanism leads to outcomes that often promote public welfare more effectively than deliberate attempts to serve the public good.

## Source Chapter

Book IV, Chapter 2

## Context

Smith introduces one of his most famous concepts, explaining how individuals seeking their own gain often promote societal interests more effectively than those who explicitly aim to benefit the public. This mechanism operates through the natural functioning of competitive markets.

## Economic Domain

General Theory

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