1. How did the market system differ from the systems for allocating resources th
ID: 1136867 • Letter: 1
Question
1. How did the market system differ from the systems for allocating resources that existed before it? 2. Why did Political Economy only come into existence with th 3. During the Mercantile period in the early days of commercial society what were the main ideas e emergence of the market systemi? related to wealth and the creation of wealth that emerged? Explain the contributions of Cantillion and the French Physiocrats in their attempts to identify key aspects of the market system In the world of moral philosophy how did Bernard Mandeville create controversy regarding the workings of commercial society and human nature? What were the key methodological features of Smith's intellectual strategy in all his work? What are the main insights Smith gives us from TMS? What are the main insights Smith gives us from WON? How can the insights from TMS and WON be reconciled through a careful reading of Smith and why and how is so often misunderstood? 4. 5. 6. 7. 8. 9. 10. Explain how Smith's definition of wealth was revolutionary and changed the way Political Economists thought about economic progress.Explanation / Answer
As per chegg guidelines first question is answered for your reference below:
1.
The current market system for allocating resources works on free market allocation system. That is, resources get allocated through intersection of demand and supply forces so that maximum efficiency is achieved and total surplus is maximized.
However, before this, the resources were alallocated through either capitalist or socialist methods of resource distribution. That is, either the rich used to decide who gets what by setting high prices so that the rich get the most (capitalist method) or by letting government do so (socialist method). However, both the methods led to a lot of corruption and loss in social welfare and thus had to be abandoned.
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