Question

Ideas from wealth of nations competition is encouraged: • competition is a __________ force in an economy. • competition keeps _______ practices at bay. • self-interest is a _________________ force. the invisible hand: • self-interest and _____________________ act together as an invisible hand, guiding businesses in a market-based economy. government interference is discouraged: • smith was also a strong advocate of ________________ government interference in the economy.

Answer 1

Adam Smith's 'The Wealth of Nations' describes competition as beneficial, self-interest as a powerful motivating force, and the invisible hand as the natural market forces guided by self-interest, leading to positive economic outcomes. He advocates for minimal government interference in the economy.

Step-by-step explanation:

In The Wealth of Nations, Adam Smith puts forth the idea that competition is a beneficial force in an economy. He argues that competition helps to keep monopolistic practices at bay, ensuring that goods and services are provided efficiently and at fair prices. Smith posits that self-interest is a powerful motivating force that drives economic actors to meet the demands of consumers, thereby creating a well-functioning and prosperous society.

Smith's theory includes the concept of the invisible hand, where self-interest and market forces act together to guide businesses, resulting in outcomes beneficial to the market-based economy as a whole. Government interference is discouraged in this model, as Smith was a strong advocate of minimizing governmental interference, which he believed could hamper the efficiency and liberty that free markets provide.