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mr Goodwill [35]
3 years ago
14

Why is adam Smith's invisible hand theory so important to a functioning free market system

Social Studies
1 answer:
Dmitry [639]3 years ago
5 0

The term invisible hand was coined by Adam Smith in his book The Wealth of Nations. Adam Smith is considered by many to be the father of modern economics and is one of the most important theorists of economic liberalism.

According to him, if the economy were free, without any intervention from external agencies or the government, it would regulate automatically, as if there was an invisible hand behind everything, causing the prices of products to be dictated by the market itself, as per your need.

This is the basis of economic theory and it has been proven to work in practice. When the market is scarce for a particular product and there is a huge demand to buy it, sellers automatically raise the price of that item, as there will still be interested consumers.

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The model is a hierarchical model meaning that every degree builds on the stage earlier than it. even as the model is once in a while used for training within the sales area, it is helpful in all walks of existence. The levels of the version are Sensing, decoding, comparing, and Responding.

in case you need to improve your listening abilities, exercise energetic listening. active listening calls for the listener to pay attention, compare and interpret the content material of the speech. The four styles of energetic listening are paraphrasing, reflecting emotions, reflecting which means, and summative reflection.

Lively, reflective listening: this is the type of listening version that you need to apply. in this version, you actively pay attention and apprehend what the alternative man or woman is pronouncing. Right here, we pay attention to what the opposite person has to say earlier than we strive to interject what we would really like to percentage.

Learn more about the SIER model here: brainly.com/question/26693908

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