Adam Smiths Invisible Hand

Page 41 questions 2-5, 7 and 9 2) Honoring tradition, because Traditional Economies atomic number 18 based on usage and beliefs of its people, aka cultural things, which is often a tradition. 3) Economic decisions in a supremacy rescue are made from government officials considering the resources and needs of the country and diffuse resources based on their judgment. 4) Consumers canful spend their money as they motivation producers decide what goods or services theyll support. 5) Adam Smiths camouflaged hand does function in both tralatitiousistic economies and operate economies, too.In traditional economies they base everything on survival. To survive, you must think about yourself but much so about your peers to stumble sure you all produce and languish what you need. In command economies, the government distributes based on their judgments but console after considering what the people need. 7) Well defined economic roles and goals can be a strength in a traditiona l parsimoniousness because in that respect isnt much disagreement going on about it. It can also be a weakness because people may non be able to get the role they desire due to their beliefs. ) I believe this is a traditional parsimoniousness because in a traditional economy, tradition sort of assigns their jobs to them and by belief they cant diverge this. Producers develop to use materials as custom says, so they may non be able to use them as they would like to. And since they go by tradition, people cant really change or have any say in the basic economy questions, or how theyre answered. Page 47 questions 2-5, 9 2) So they can provide for everyone. 3) leadership can use the nations resources to produce items that may non make money in a foodstuff economy and plain the sick or old who arent productive economically are provided for. ) Prices are below what they could be worth, and leaders are more unsuspecting of local conditions, making their decisions wrong. The le aders are paged no matter their output. No private property makes people want to use resources wrong more. 5) The pass on rules the individuals every move. 9) Page 57 Questions 2-5, 7, 9 2) Private property, specialization, consumer sovereignty, competition, government involvement, unforced exchange, profit. 3) People free to make their own economic choices, people are free to develop interests and talents they like. Profit. ) No mechanism for providing public goods and services, cannot provide trade protection to those who cant be productive. 5) Efficiency serves as a reward for thorny work and innovation, and if they were inefficient with distributing resources, they would make less profit. 7) What payments they pay to the factor market are sent as income from resources to the households who pay consumer spending to the product market which sends business revenue right back to businesses. 9) The government in this economy can try to help provide for those who cant be productiv e and try to do some public services and offer goods.Page 63 questions 2-5, 8-9 2) A market driven mixed economy is an economy where the people want a mixture of command economies and market. France is one of these, their economy emphasized the command system in years following WW2, in the 80s they witnessed the dissatisfaction with performance of the govt. So the French lowered the command role. 3) 4) 5) 8) 9) 1 The producer should be able to decide how many of the digital cameras or of everything else to produce. Because he is producing that good, he should be able to decide who to make it for, as well. 2