Question

Adam Smith believed that fair prices for goods are determined in a capitalist system

Answer 1

The answer is: A.through competition between businesses.

According to smith, businesses would always wanted to obtain as money costumers as possible. During the process of competition, they would keep trying to provide the customers with the cheapest price possible. Eventually, the power of supply and demand would bring the price of the product into a fair point.

Answer 2

Adam Smith believed that fair prices for goods are determined in a capitalist system through competition between businesses.

Adam Smith is envisioned as the primary scholar of the commonly preferred session known as capitalism. Smith believes that when people acquire the commodity from the market is perpetually more important to what they are spending in substitution for a commodity.

Further Explanation:

Adam Smith has considered as the foremost philosopher of what we ordinarily attribute to as capitalism. His 1776 endeavor of the book designated as" An Inquiry into the Nature and Causes of the Wealth of Nations", hypothesized that inside an enduring classification of business and evaluation, people would recognize to the significance of experiencing more by contemplating on their creation. These people would consistently, without distinct state intervention can undeviatingly work in such a way so that it can provide the commodities of greater value. This would facilitate the entire economy to turn to be more prolific, and it would, consequently, be more prosperous. Smith demonstrated that preserving remarkable yielders would help in the lead to unproductive composition and that a nationwide hoarding of the money in the form of coinage would only enhance values and this argument retains its similarity with the theory professed by David Hum.

Learn more:

1. Which statement is an accurate description of the American federal system? brainly.com/question/2956674

2. What rights are specifically protected under the ninth amendment? brainly.com/question/646780

Answer details:

Grade: High school

Subject: History

Chapter: NA

Keywords: Adam smith, philosopher, nature, causes, nations, hoarding, similarity, inquiry, Demonstrated, yielders, prolific, coinage, nation, David Hum.