1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
timama [110]
3 years ago
13

Are there any reasons why Smith's model of capitalism might not be a successful argument in favor of the free-market system?

Social Studies
2 answers:
vladimir2022 [97]3 years ago
8 0
Smith stated in his theory that  the free market economy is Governed by "Invisible hand"
This stands in opposite argument of the free market economy which stated that the free market is governed by supply and demand

hope this helps
enot [183]3 years ago
5 0

According to Adam Smith, in a free market system, the market would control by itself by the factors of demand and offer. He called these factors "the invisible hand" and he thought the government didn't have to interfere with the market because it was ok by itself. However, Smith's model of capitalism didn't consider the standards of quality, nor the labor conditions for workers and the control of monopolies.

For example, if the market only followed the trends of demand and offer, the companies would try to abuse their workers in order to produce more, or they will establish monopolies (control) of good and services in order to raise the prices. Imagine little towns where there is only one internet provider, if the company didn't have any governmental controls and limitations, it could charge crazy amounts of money for the internet service, when in reality it doesn't cost as much.

You might be interested in
Who is believed to have been the only African American soldier at the Battle of Kettle Creek?
bogdanovich [222]
A Ethan Lincoln cut down the characters tree in 18936 beacuse he was day and hunger
6 0
3 years ago
Read 2 more answers
What are the three main types of farming in Africa?
sweet-ann [11.9K]
Arable pastoral and mixed hope this helped
5 0
3 years ago
What five European countries explored to the New World
Lilit [14]
England,spain,portugal,the netherlands, and france
4 0
3 years ago
"I" messages:_____.
NikAS [45]
I think the answer is a.
4 0
3 years ago
Good mic to strap to mic on church podium for wedding video?
Aleksandr-060686 [28]
<span>I'm assuming I will need some sort of shotgun mic, since I won't be closer than 20 or 30 feet from the altar. I am running a Sony HDR-FX7 so I only have an 1/8" input. What equipment do you recommend that will have pretty good sound, but doesn't cost like $1200?</span>
6 0
3 years ago
Other questions:
  • Does beowulf's boasting show him to be offensively arrogant? why? in what situations today might such boasting be expected?
    5·1 answer
  • Hypothesize the reasons that the anti-federalists feared too much power resting with the central government.
    13·2 answers
  • What fraction of the house of congress is necessary to approve a proposed amendment?
    15·1 answer
  • According to this excerpt from the opinion of the court, how does segregation have a "detrimental effect" on minority students?
    9·2 answers
  • Your friend hopes to expand her business to multiple locations. It would be best for her to create a
    10·1 answer
  • Which of the following statements about slavery is NOT correct?A. Slavery was a very profitable industry that helped build the U
    5·1 answer
  • 2. Like the Egyptians, the Nubians relied on the Nile River for their water.
    8·1 answer
  • The Minoans earned their living by doing what
    14·1 answer
  • B. Where do tidal waves originate, and where do they end?
    15·1 answer
  • How did Tuskegee University impact African American Education?
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!