Asked by
Joseph Zamorano
on Oct 13, 2024
Verified
Capitalism is based on all of the following except
A) the "invisible hand."
B) the price mechanism.
C) trust.
D) equity.
"Invisible Hand"
A metaphor introduced by Adam Smith to describe how individual self-interest and competition can lead to social and economic benefits.
Price Mechanism
The manner in which the prices of goods or services affect the supply and demand of those goods or services, and how this interaction determines the allocation of resources.
Equity
The ownership interest held by shareholders in a corporation, represented by their shares of the company.
- Acquire knowledge on the theory of the price mechanism and its significance in capitalist economic systems.
- Acknowledge the potential for conflict between efficiency and equity goals within an economic system.
Verified Answer
RF
Learning Objectives
- Acquire knowledge on the theory of the price mechanism and its significance in capitalist economic systems.
- Acknowledge the potential for conflict between efficiency and equity goals within an economic system.