Which concept suggests that individuals' pursuit of their own interests will lead to overall economic improvement?

The concept that suggests that individuals' pursuit of their own interests will lead to overall economic improvement is known as the Invisible Hand. This idea was articulated by the economist Adam Smith in his work "The Wealth of Nations." According to this concept, individuals seeking to maximize their own benefits contribute to the economic wellbeing of society as a whole. When people engage in economic activities—such as buying, selling, and trading—they inadvertently promote social benefits.

For example, when a business owner seeks to profit by providing goods or services, they must meet the needs and desires of consumers. This creates a competition that drives innovation, lowers prices, and improves quality, ultimately benefiting all participants in the market. Thus, the collective actions of individuals motivated by self-interest can enhance overall economic efficiency and growth, reflecting the workings of the free market.

On the other hand, social responsibility, market failure, and consumer sovereignty each represent different aspects of economic and social considerations but do not specifically encapsulate the mechanism by which individual self-interest drives broader economic improvement as effectively as the concept of the Invisible Hand.