Market economies are based upon:?
Question:
B)government planning and individual good will towards others.
C)government planning and private property.
D)individual self-interest and private property.
Answer:
Kind of a funky question, but the answer is definitely "D'
Adam Smith doesn't say anything about goodwill towards others in fact he says the opposite: "it iis from the baker's self-interest that we get our daily bread." Smith is saying that its not out of altruism (good will) that the baker gets up really early in the morning to make bread. He make like others, but he gets up to bake bread because its in his own interest to do it -- it gives him money to feed himself and his familly.
A
D. Individual self-interest and private ownership drives a market-based economy.
A is wrong because most individual do not plan and are neutral or against others, not altruistic
B is wrong because governments are run by individuals and they cannot properly ascertain what products at what prices will clear equilibrium, and lack of altruism (it is a socialist/communist approach)
C is wrong (it is the Nazi approach) because governments cannot predict closely what the economy needs
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