ECONOMICS
MARKETS AND PRICES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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supported laissez-faire economics
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was anti-monopoly
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French
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believed in “the invisible hand”
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Detailed explanation-1: -What Did Adam Smith Say About the Invisible Hand? Adam Smith wrote about an invisible hand in his writings during the 1700s, noting that the mechanism of an invisible hand benefits the economy and society thanks to self-interested individuals.
Detailed explanation-2: -Answer and Explanation: d. Market power is the instrument with which the invisible hand directs economic activity.
Detailed explanation-3: -Smith believed that economic development was best fostered in an environment of free competition that operated in accordance with universal “natural laws.” Because Smith’s was the most systematic and comprehensive study of economics up until that time, his economic thinking became the basis for classical economics.
Detailed explanation-4: -What is an example of the invisible hand? To increase market share, a manufacturer might provide a higher-quality product at a lower price than its competitors. Maintaining low pricing may generate demand and foster competition among companies selling comparable items.