Question on Adam Smith and Capitalism

Content Type

User Generated

User

OyhrBprna

Subject

Economics

Description

Discuss Adam Smith and His Invisible Hand of Capitalism. Discuss the merits of this theory. Please cite examples or situations whenever possible. Cite references.

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Okay! I think I have a great answer for you that you'll be pleased with. Please look over the discussion response and the outline and see what you think. If you need to change anything, please let me know and I'll do what I can to make it right! :)

Assignment Description: “Discuss Adam Smith and His Invisible Hand of Capitalism.
Discuss the merits of this theory. Please cite examples or situations whenever possible.
Cite references.”
Adam Smith’s theory about the “invisible hand” of capitalism does a good job of
describing the balance in capitalism between supply and demand by explaining selfinterest and competition, but while the invisible hand works in theory, when applied to
capitalism, at least in American history, his theory does not hold up. Essentially, the
invisible hand described by Smith is the balance between self-interest and competition.
According to this theory, people choose their occupation ...

Completion Status:

100%

Review

Review

Anonymous

Really helped me to better understand my coursework. Super recommended.

Studypool

4.7

Trustpilot

4.5

Sitejabber

4.4

24/7 Homework Help

Stuck on a homework question? Our verified tutors can answer all questions, from basic math to advanced rocket science!

Factors Affecting Economic GrowthThere are a number of economic and noneconomic factors that affect long-run economic grow ...

Factors Affecting Economic GrowthThere are a number of economic and noneconomic factors that affect long-run economic growth of countries. Among these factors, roles of physical capital, human capital, technology, and natural resources in influencing long-run economic growth of aggregate output per capita are widely discussed. Governments also play their roles in promoting and sustaining long-run economic growth of countries.Based on your reading of Chapter 26, other course materials, and your knowledge and experience, analyze the following questions.What factors might contribute to low or high growth rates in a country? How can sustainable long-run economic growth rate be realized? What are the roles of the government in achieving sustainable long-run economic growth? Why resources are no longer the most important indicators of economic growth disparity among countries? Which other economic and noneconomic factors do you think explain the reasons behind growth disparities among countries? What is the relationship between economic growth rate and unemployment rate?

UCLA Incorporating Stochastic Dominance Criteria and Data Envelopment Analysis Ques

When You AssumeThe Price is RightInfirmed TradingHedgingBarriers1.As with any economic model, failure of the CAPM’s conc ...

UCLA Incorporating Stochastic Dominance Criteria and Data Envelopment Analysis Ques

When You AssumeThe Price is RightInfirmed TradingHedgingBarriers1.As with any economic model, failure of the CAPM’s conclusions to fit the data implies failure of the model’s assumptions to match reality. Which of the CAPM’s assumptions seem to deviate the most from your intuition about how investors behave and how markets actually function? How might this cause asset returns to differ from those predicted by the theory?2. If markets are inefficient, then why have traders not been able to exploit the wealth of arbitrage opportunities that should be out there? If markets are efficient, then what reason would traders have to trade at all if price movements were simply random?3. What are the benefits, if any, of allowing trading on private information? Where would you draw the line between “fair” informed trading and insider trading? 4. If you somehow managed to create a perfect hedge, then while your portfolio would be risk-free, it would also only earn you the risk-free rate, so you could have just skipped all that work and just bought T-Bills instead. Knowing this, what exactly is the purpose of hedging anyway?5.In an M-M world, shareholders shouldn’t care about a firm’s capital structure because they can just borrow or lend on their own to replicate any debt-equity ratio. Would this work in the real world, and what would be some barriers you’d expect to encounter if you tried to implement it?

Economic Profits and Accounting Profits

What is the basic economic problem that all persons, businesses and countries face? What are the differences in the way a ...

Economic Profits and Accounting Profits

What is the basic economic problem that all persons, businesses and countries face? What are the differences in the way a market process vs. a command process attempt to deal with the basic economic problem? What is the difference between Economic Profits and Accounting Profits? Discuss the importance of taking into account the opportunity costs (implicit costs) in investment decisions. Illustrate you discussion with examples.700 words. APA format. References must be scholarly/academic journals and no earlier than 2010

5 pages

Monopoly And Oligopoly.edited

The market for textbooks in our campus is of monopoly nature since there is only one bookshop in the campus compound. The ...

Monopoly And Oligopoly.edited

The market for textbooks in our campus is of monopoly nature since there is only one bookshop in the campus compound. The reason as to why only one ...

ECON 380 Use of the Inverse Demand Equation Discussion

ECON 380 Use of the Inverse Demand Equation Discussion

WU Eliyahu M Goldratt Critical Chain Book Overview & Analysis Discussion

Professional Assignment 1 – CLO 1, CLO 2 Read your textbook and other peer-reviewed publications, write a minimum of fou ...

WU Eliyahu M Goldratt Critical Chain Book Overview & Analysis Discussion

Professional Assignment 1 – CLO 1, CLO 2 Read your textbook and other peer-reviewed publications, write a minimum of four (4) pages of high quality well written APA formatted standard about the following scenario. Please keep in mind that this assignment is quantitative, therefore do not forget to use the figures and charts. Price of oil in international markets has dropped stunningly 60% in the past twelve months. Among the factors mentioned behind this drastic fall is the millions of barrels of oil produced in the US called shale oil.” and analyze: ? The market structure for oil industry ? The supply and demand for oil in that market structure ? The pricing of oil at the presence of OPEC and the role of Speculators ? Why shale oil is a substitute for oil and explain the news in regard to the Cross elasticity of demand. (Chapter 3)

Similar Content

Question about ECON60022(DEVELOPMENT MICROECONOMICS)

I'm working on a microeconomics question and need support to help me study.please see the pdf file first and make sure you...

Add 200 words to a paper

i have attached the paper Add 200 words to a paperAdd 200 words to a paperAdd 200 words to a paperAdd 200 words to a paper...

Pepperdine University Economics Essay

1. DEFINITIONS. Define any 10 terms. Give examples where pertinent. Macro Economics Opportunity cost Model/Theory Micro Ec...

Growth: Economic Analysis 2

In 3–4 pages, analyze economic growth and its impact on a nation, the concepts of gross investment and net investment,...

Grossmont Cuyamaca Community People and Economic Incentives Essay

Students must prepare a three to four page typewritten double-spaced paper on a current microeconomic topic that is pertin...

UCI Impact of the Delta Variant on the Chinese Economy Discussion

Read this article from Bloomberg (click here (Links to an external site.)) about how the Delta variant might affect China'...

There are no restrictions to entry into the industry. A perfectly competitive firm chooses the output that maximizes its e...

Finance Summary.edited.edited 1

In the financial sector, the occurrence of unpredicted risks could influence how businesses operate and how people engage ...

Long Term Capital Management Ltcm

Derivatives have gradually developed to become one of the critical elements in the financial world, with a value of over $...

Related Tags

social powerpoint multinational units online assignment exchange models small business microeconomics the constitution economics Unemployment physics problems consumption funtion

Homework help

Our tutors provide high quality explanations & answers.

Post question

Factors Affecting Economic GrowthThere are a number of economic and noneconomic factors that affect long-run economic grow ...

Factors Affecting Economic GrowthThere are a number of economic and noneconomic factors that affect long-run economic growth of countries. Among these factors, roles of physical capital, human capital, technology, and natural resources in influencing long-run economic growth of aggregate output per capita are widely discussed. Governments also play their roles in promoting and sustaining long-run economic growth of countries.Based on your reading of Chapter 26, other course materials, and your knowledge and experience, analyze the following questions.What factors might contribute to low or high growth rates in a country? How can sustainable long-run economic growth rate be realized? What are the roles of the government in achieving sustainable long-run economic growth? Why resources are no longer the most important indicators of economic growth disparity among countries? Which other economic and noneconomic factors do you think explain the reasons behind growth disparities among countries? What is the relationship between economic growth rate and unemployment rate?

UCLA Incorporating Stochastic Dominance Criteria and Data Envelopment Analysis Ques

When You AssumeThe Price is RightInfirmed TradingHedgingBarriers1.As with any economic model, failure of the CAPM’s conc ...

UCLA Incorporating Stochastic Dominance Criteria and Data Envelopment Analysis Ques

When You AssumeThe Price is RightInfirmed TradingHedgingBarriers1.As with any economic model, failure of the CAPM’s conclusions to fit the data implies failure of the model’s assumptions to match reality. Which of the CAPM’s assumptions seem to deviate the most from your intuition about how investors behave and how markets actually function? How might this cause asset returns to differ from those predicted by the theory?2. If markets are inefficient, then why have traders not been able to exploit the wealth of arbitrage opportunities that should be out there? If markets are efficient, then what reason would traders have to trade at all if price movements were simply random?3. What are the benefits, if any, of allowing trading on private information? Where would you draw the line between “fair” informed trading and insider trading? 4. If you somehow managed to create a perfect hedge, then while your portfolio would be risk-free, it would also only earn you the risk-free rate, so you could have just skipped all that work and just bought T-Bills instead. Knowing this, what exactly is the purpose of hedging anyway?5.In an M-M world, shareholders shouldn’t care about a firm’s capital structure because they can just borrow or lend on their own to replicate any debt-equity ratio. Would this work in the real world, and what would be some barriers you’d expect to encounter if you tried to implement it?

Economic Profits and Accounting Profits

What is the basic economic problem that all persons, businesses and countries face? What are the differences in the way a ...

Economic Profits and Accounting Profits

What is the basic economic problem that all persons, businesses and countries face? What are the differences in the way a market process vs. a command process attempt to deal with the basic economic problem? What is the difference between Economic Profits and Accounting Profits? Discuss the importance of taking into account the opportunity costs (implicit costs) in investment decisions. Illustrate you discussion with examples.700 words. APA format. References must be scholarly/academic journals and no earlier than 2010

5 pages

Monopoly And Oligopoly.edited

The market for textbooks in our campus is of monopoly nature since there is only one bookshop in the campus compound. The ...

Monopoly And Oligopoly.edited

The market for textbooks in our campus is of monopoly nature since there is only one bookshop in the campus compound. The reason as to why only one ...

ECON 380 Use of the Inverse Demand Equation Discussion

ECON 380 Use of the Inverse Demand Equation Discussion

WU Eliyahu M Goldratt Critical Chain Book Overview & Analysis Discussion

Professional Assignment 1 – CLO 1, CLO 2 Read your textbook and other peer-reviewed publications, write a minimum of fou ...

WU Eliyahu M Goldratt Critical Chain Book Overview & Analysis Discussion

Professional Assignment 1 – CLO 1, CLO 2 Read your textbook and other peer-reviewed publications, write a minimum of four (4) pages of high quality well written APA formatted standard about the following scenario. Please keep in mind that this assignment is quantitative, therefore do not forget to use the figures and charts. Price of oil in international markets has dropped stunningly 60% in the past twelve months. Among the factors mentioned behind this drastic fall is the millions of barrels of oil produced in the US called shale oil.” and analyze: ? The market structure for oil industry ? The supply and demand for oil in that market structure ? The pricing of oil at the presence of OPEC and the role of Speculators ? Why shale oil is a substitute for oil and explain the news in regard to the Cross elasticity of demand. (Chapter 3)