Who is Adam Smith? 18th century Scottish philosopher who coined the idea of the invisible hand - an idea that individuals acting in their own self interest must be restrained by the government and that the government should provide an "invisible" guidance to market forces for the well-being of society. 18th century American economist whose work comparing various economic systems across the globe led to important breakthroughs in economic thought. 18th century Scottish philosopher who coined the idea of the invisible hand - an idea that individuals acting in their own self interest will automatically result in well-being of the society. 19th century American mathematician who conducted substantial research on the topic of game theory, which is applied in economics.
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Adam Smith wrote that the a. economic problems of eighteenth-century England were caused by free markets. b. government should control the economy with an “invisible hand." c. pursuit of private self interest promotes the public interest in a market economy. d. public or collective interest is not promoted by people pursuing their self interest.
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Explain how Adam Smith describes the market economy and the role of consumers, producers, workers, savers (investors), and borrowers in the market economy.
Adam Smith used the "invisible hand" as a metaphor for the forces that balance a free market. What might be a good metaphor for the forces at work in a command economy? Explain your answer.
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