--%>

Guardian implies that there really is an invisible hand

Evaluate and explain the statements: “Market is its own guardian implies that there really is an invisible hand or taskmaster that watches over the decision makers in the marketplace”

E

Expert

Verified

The statement that the market is its own guardian implies that there really is an invisible hand or taskmaster that watches over the decision makers in the marketplace.  In a pure capitalist system where free markets exist, freedom of enterprise and freedom of choice exist.  However, if one chooses to produce that which the consumer does not want, or at least doesn’t want enough to cover the cost of the scarce resources employed, the producer-entrepreneur will find this freedom of enterprise limited by the decisions of consumers in the marketplace.  On the demand side, consumer choice is limited by the prices of commodities which consumer wants and the consumer’s income i.e. limited by value that the consumer’s own resources can earn in resource markets.

   Related Questions in Business Economics

  • Q : Elucidate Ticket Scalping - A Bum Rap

    Elucidate “Ticket Scalping:  A Bum Rap”?

  • Q : Comment surpluses drives price

    surpluses drives price down,shortages drive up

  • Q : Illustrate major economic flows that

    Illustrate major economic flows that link U.S. with nations.  Provide an example to illustrate each flow.  Explain the relationship between the top and bottom flows.

  • Q : Significant that economics is not a

    Why is it significant that economics is not a laboratory science?  What problems may be evolved in deriving and applying economic principles?

  • Q : Illustrate receipts from several

    Illustrate how receipts come from several sources in Federal Finance?

  • Q : Gains from Exchange- Practice and

    When a world famous concert pianist is as well the world's fastest short order cook, he would most likely gain the most financially through devoting: (i) Full time to frying burgers (ii) Full time to piano practice and concerts. (iii) Half-time cooking and half-time p

  • Q : Advantages rising from division of

    Adam Smith known three advantages rising from divisions of labor which would lead to greater economic wealth that did not include the concept that the division of labor: (w) helps every worker refine specialized skill

  • Q : Problem on prisoners dilemma game Lets

    Lets assume an infinitely repeated prisoner’s dilemma game by two players. The resulting payoffs at each phase by the actions of two players are illustrated below in the table (payoffs are symbolized like (payoff for player 1, payoff for player 2)). Two players

  • Q : Need urgent help need urgent help in

    need urgent help in business economics, please suggest

  • Q : What is an inverse relationship Briefly

    Briefly explain the use of graphs as a way to present economic relationships. What is an inverse relationship?