Adam Smith Invisible Hand

Who wrote: The Theory of Moral Sentiments and The Wealth of Nations.

• John Smith

• Adam Smith

• Adam Jones

• John Jones

In a free market, when more people decide they want a particular item _

• Prices go down, prompting an increase in quantity supplied

• Prices go up, prompting an increase in quantity supplied

• Prices go up, prompting a decrease in quantity supplied

• Prices don’t change, resulting in a shortage

__ act as an incredible price-discovery mechanism.

• Computers

• Algorithms

• Search engines

• Markets

eBay is a great example of ________.

• A free market

• A highly-regulated market

• A monopoly

• A system in which sellers have the advantage over buyers

The free market is about ____________.

• cooperation between buyers and sellers

• businesses taking advantage of people

• competition between buyers and sellers

• planning and direction by experts

The Invisible Hand concept explains ____________.

• people and systems working together with no one directing them

• businesses taking advantage of customers

• helping those who are disadvantaged

• economic planning and direction by experts

The prices we're willing to pay ____________.

• are too low

• are irrelevant

• send key signals to producers

• are unfair

Adam Smith thought that order ____________.

• required government planning

• would emerge as a consequence of the interactions of individuals

• was very difficult to achieve in a democracy

• was undesirable because it didn’t allow for change

The entire global _____ boils down to two people: a buyer and a seller

• planet

• business

• economy

• wealth

A _______ is one of the most powerful forces on earth

• DC Super Hero

• Marvel Super Hero

• tornado

• free market