Eighteenth-century economist Adam Smith is famed for his metaphor of the invisible hand, which he putatively used to illustrate a...
GMAT Information and Ideas : (Ideas) Questions
Eighteenth-century economist Adam Smith is famed for his metaphor of the invisible hand, which he putatively used to illustrate a robust model of how individuals produce aggregate benefits by pursuing their own economic interests. Note 'putatively': as Gavin Kennedy has shown, Smith deploys this metaphor only once in his economic writings—to make a narrow point about the then-dominant economic theory of mercantilism—and it was largely ignored until some twentieth-century economists eager to secure an intellectual pedigree for their views elevated it to a fully-fledged paradigm.
Which choice best states the main idea of the text?
Although Smith is famed for his metaphor of the invisible hand, the metaphor was largely ignored until economists in the twentieth century came to realize that the metaphor was a robust model that anticipated their own views.
Some twentieth-century economists gave Smith's metaphor of the invisible hand a significance it does not have in Smith's work, but it is nevertheless a useful model of how individuals produce aggregate benefits by pursuing their own economic interests.
Smith's metaphor of the invisible hand has been interpreted as a model of how individuals acting in their own interest produce aggregate benefits, but it was intended as a subtle critique of the economic theory of mercantilism.
The reputation of Smith's metaphor of the invisible hand is not due to the importance of the metaphor in Smith's work but rather to the promotion of the metaphor by some later economists for their own ends.
Step 1: Decode and Map the Passage
Create Passage Analysis Table
| Text from Passage | Analysis |
|---|---|
| "Eighteenth-century economist Adam Smith is famed for his metaphor of the invisible hand, which he putatively used to illustrate a robust model of how individuals produce aggregate benefits by pursuing their own economic interests." |
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| "Note 'putatively':" |
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| "as Gavin Kennedy has shown, Smith deploys this metaphor only once in his economic writings—to make a narrow point about the then-dominant economic theory of mercantilism—and it was largely ignored until some twentieth-century economists eager to secure an intellectual pedigree for their views elevated it to a fully-fledged paradigm." |
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Provide Passage Architecture & Core Elements
Main Point: Adam Smith's reputation for the invisible hand metaphor is misleading because he barely used it, and its current prominence comes from later economists who promoted it to support their own theories.
Argument Flow: The passage opens with Smith's famous reputation, immediately questions that reputation with putatively, then provides evidence showing the reputation is false—the metaphor was rarely used by Smith and only gained prominence when later economists found it useful for their own purposes.
Step 2: Interpret the Question Precisely
What's being asked? The main idea of the entire text
What type of answer do we need? A statement that captures the central message about Smith's metaphor and its reputation
Any limiting keywords? Main idea means we need the overarching point, not a detail
Step 3: Prethink the Answer
- The correct answer should capture that Smith's famous reputation for the invisible hand metaphor doesn't match reality
- Specifically, it should include that Smith barely used this metaphor and that its current prominence comes from twentieth-century economists who promoted it for their own purposes, not because it was important in Smith's original work
Although Smith is famed for his metaphor of the invisible hand, the metaphor was largely ignored until economists in the twentieth century came to realize that the metaphor was a robust model that anticipated their own views.
- Claims 20th century economists came to realize the metaphor anticipated their own views
- This misses the key point that they promoted it for their own purposes, not because it genuinely anticipated their theories
Some twentieth-century economists gave Smith's metaphor of the invisible hand a significance it does not have in Smith's work, but it is nevertheless a useful model of how individuals produce aggregate benefits by pursuing their own economic interests.
- Correctly notes that 20th century economists gave the metaphor undeserved significance, but then claims it is nevertheless a useful model
- The passage never evaluates whether the metaphor is actually useful
Smith's metaphor of the invisible hand has been interpreted as a model of how individuals acting in their own interest produce aggregate benefits, but it was intended as a subtle critique of the economic theory of mercantilism.
- Says the metaphor was intended as a subtle critique of mercantilism
- The passage only says Smith made a narrow point about mercantilism, not that he was critiquing it
The reputation of Smith's metaphor of the invisible hand is not due to the importance of the metaphor in Smith's work but rather to the promotion of the metaphor by some later economists for their own ends.
- Directly addresses that the metaphor's reputation isn't due to its importance in Smith's work
- Captures that later economists promoted it for their own ends
- Matches our prethinking perfectly—the reputation comes from later promotion, not original significance