Adam Smiths Invisible Hand

Topics: Economics, Economic system, Economy Pages: 2 (602 words) Published: November 25, 2012
Page 41 questions 2-5, 7 and 9
2) Honoring tradition, because Traditional Economies are based on customs and beliefs of its people, aka cultural things, which is often a tradition. 3) Economic decisions in a command economy are made from government officials considering the resources and needs of the country and distribute resources based on their judgment. 4) Consumers can spend their money as they want; producers decide what goods or services they’ll offer. 5) Adam Smith’s “invisible hand” does function in both traditional economies and command economies, too. In traditional economies they base everything on survival. To survive, you must think about yourself but more so about your peers to make sure you all produce and consume what you need. In command economies, the government distributes based on their judgments but still after considering what the people need. 7) Well defined economic roles and goals can be a strength in a traditional economy because there isn’t much disagreement going on about it. It can also be a weakness because people may not be able to get the role they desire due to their beliefs. 9) I believe this is a traditional economy because in a traditional economy, tradition sort of assigns their jobs to them and by belief they can’t change this. Producers have to use materials as custom says, so they may not be able to use them as they would like to. And since they go by tradition, people can’t really change or have any say in the basic economy questions, or how they’re answered.

Page 47 questions 2-5, 9
2) So they can provide for everyone.
3) Leaders can use the nation’s resources to produce items that may not make money in a market economy and even the sick or old who aren’t productive economically are provided for. 4) Prices are below what they could be worth, and leaders are more unaware of local conditions, making their decisions wrong. The leaders are paged no matter their output. No private property makes people want to...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Adam Smith : Invisible Hand Essay
  • Adam Smith and the Invisible Hand Essay
  • Adam Smith Invisible Hand Essay
  • Invisible hand Essay
  • smith Essay
  • The Invisible Hand Essay
  • Essay on Invisible Hand
  • Essay on Invisible Hand

Become a StudyMode Member

Sign Up - It's Free