Match each of the quotes with the correct term. a. "If you compare a list of today’s most powerful and profitable companies with a similar list from 30 years ago, you will see lots of new entries:" b. "Managers in the old Soviet Union often sacrificed product quality and variety because they were being awarded bonuses for quantitative, not qualitative, targets:" c. "Each day, central planners in the old Soviet Union were tasked with setting 27 million prices—correctly:"d. "It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest:"
The best choice would be A, my bruh.
A. people work for the benefit of others because it benefits them to do so.
B. most of us no longer get our dinner directly from the butcher, the brewer, and the baker.
C. butchers, brewers, and bakers are not productive members of society.
D. high-interest payments mean that no one has to work anymore.
Its A
Yes, it helps how markets function.
Explanation:
A market is a place where buying and selling of goods or services take place. It can be in a physical location or it can be over the Internet.
The main goal of a seller is to make profit from sales, so a seller won't sell a watch he bought $10.50 for $5.50 because he wants to do good to the society.
He'll put into consideration his expenses and factor in his expected profit before setting a selling price.
Every seller of a good or provider of service is out to make a profit and not make a loss so he can improve his standard of living.
creative destruction Defined by Schumpeter as the revolution within the sysem for nw companies to be created and fated to destroy the old industry
"If you compare a list of today’s most powerful and profitable companies with a similar list from 30 years ago, you will see lots of new entries:"
incentive problem As we create an incentive for a particular outcome or directions the other aspects and characteristics are neglected.
"Managers in the old Soviet Union often sacrificed product quality and variety because they were being awarded bonuses for quantitative, not qualitative, targets"
the coordination problem the information in an economic system s too complex to be calculated
Each day, central planners in the old Soviet Union were tasked with setting 27 million prices—correctly
Invisible hand direct quote from Adam Smith description of how capitalism economy works
It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest
Explanation:
This would be the free market, or capitalist system that believes that the role of the government is only to promote competition and provide public goods.
The quote from Adam Smith expresses the idea of capitalism system which shows that the role of the government is only to promote competition and provide public goods. The aim of such statement is to prevent government of monopolizing by independent companies.
The central thesis of Smith's "The Wealth of Nations" is that our individual need to fulfill self-interest results in societal benefit, in what is known as his "invisible hand".
Explanation:
The first alternative is correct (A).
The man for Adam Smith is naturally selfish and always seeks to satiate his own interests. However, for Smith this is economically positive. When the social group seeks to maximize its interests, the economy is stimulated through the exchange and sale of goods in a market where everyone wants to obtain benefits. That is why Smith maintains that it is not of the benevolence of the butcher that we have our dinner, but rather because the butcher has the ambition to profit, and therefore provides the meat. When all individuals act together for their ambitions, society gains through the supply and consumption of products. This is the mechanism called the "invisible hand" by Adam Smith.