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

True or false: The explicit location is found inside the query

arlik [135]

That statement is true - assuming that you are talking about queries in search engine.

for example, John from London type this query on his search engine " Mc Donalds Manchester Area"

Macnhester is the explicit location, because it is found insde the query

Meanwhile, London become the implicit location because it is the location where John Type the query

5 0

3 years ago

Members of a twelve-person jury all took slightly different notes of the testimony they heard. When they get together, everyone

malfutka [58]

Answer:

credibility of eye witnesses

8 0

2 years ago

Assuming the average human lifespan is 80 years, how many seconds will an average human being live? × 10 seconds

Alex17521 [72]

Answer:

100

Explanation:

100

5 0

2 years ago

The purpose of the checks and balances system is to

UNO [17]

Answer:

Explanation:

Each branch of the government keeps the other in line so they all don't go on a power trip. It's kind of like going out and drinking w your freinds. You keep eachother from getting too drunk basically lol

7 0

3 years ago

A(n) __________ American visitor to _______ Egyptian client may be frustrated as he or she waits for meetings to begin then find

kirza4 [7]

Answer:

A(n) monochronic American visitor to polychronic Egyptian client may be frustrated as he or she waits for meetings to begin then finds the meeting regularly interrupted.

Explanation:

Monochronic can be described as a culture in which the people belonging to that culture like to do one thing at a time. These people do not like interruptions.

On the other hand, polychronic people tend to do multiple tasks at a given time.

The interruption of a meeting will be frustrating for any person whether the person be a monochronic or a polychronic.

6 0

3 years ago