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

2 answers:

vladimir2022 [97]2 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]2 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

In terms of social influences, word-of-mouth has more credibility, but advertising has more ________

Brums [2.3K]

In terms of social influences, word-of-mouth has more credibility, but advertising has more reach.

<h3>What is advertising?</h3>

Advertising can be defined as the process of creating product or brand awareness so as to reach the target audience or to generate more sales.

Advertising can tend to reach large number of people especially if media is use for the advertisement, while on the other hand word of mouth has more credibility and reliable compare to advertising based on the fact that you word of mouth is a verbal communication from one person to another person.

Learn more about advertising here:brainly.com/question/1658517

#SPJ1

5 0

1 year ago

Littoral zones are more likely to contain vegetation than riparian zones

alexandr1967 [171]

Littoral zones are more likely to contain vegetation than riparian zones. The statement presented is False. A riparian zone or riparian area is the interface between land and a river or stream. Riparian is also the proper nomenclature for one of the fifteen terrestrial biomes of the earth.

8 0

2 years ago

Read 2 more answers

Where is poverty reduction more rural or urban area??

Monica [59]

There is more poverty reduction in a urban area

6 0

3 years ago

Read 2 more answers

Every year, citizens in most states pay a tax on their houses and cars. Which type of tax is this?

Shalnov [3]

Answer:

Property tax

Through donations

6 0

3 years ago

Glinda jingles her keys in front of baby Elphaba's face, and she watches and smiles. Glinda continues to bring her keys up and j

Margaret [11]

Answer:

D. habituation.

Explanation:

Glinda jingles her keys in front of baby Elphaba's face, and she watches and smiles. Glinda continues to bring her keys up and jingle them in front of Elphaba because she appears to enjoy this game. After a while, though, Elphaba seems to lose interest in the game and no longer focuses on the keys when Glinda jingles them. This illustrates the process of habituation.

Habituation in infants is the reduced responsiveness experienced in children after the repeated presentation of a stimulus. After a stimulus is repeated to an infant, the infant becomes desensitized to that stimulus.

7 0

3 years ago