Homework: Economics for Public Administrators
Adam Smith, a very influential eighteenth-century political economist, wrote, "By pursuing his own interest, he frequently promotes that of the society more effectually than when he really intends to promote it" (cited in Stiglitz & Rosengard, 2015, p. 62). Considering the quotation, in 1,250 to 1,500 words, address the following questions.
• Describe what Smith meant by the "invisible hand." How exactly does it function?
• Describe how Smith's work is a reaction to mercantilism, which dominated the seventeenth and eighteenth centuries. As a point of departure, define mercantilism.
• Discuss if all 19th-century thinkers agree with Smith. How did, for instance, Karl Marx view the doctrine of laissez-faire? What were the inevitable consequences of such an economic system?
• Discuss the influences of Smith and his critics, like Marx, reflected in the mixed economy of the United States today.
Format your homework according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.