Global economics

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1. 
What significant
events were occurring in England and North America at the time that
The Wealth
of Nations
was written?

(3 points)

2.  What was Adam
Smith’s purpose in writing The Wealth of
Nations
?

(3 points)

3.  Why does Smith
think that pursuing personal interests is a more effective way to benefit
society than trying to pursue the interest of society as a whole?

(3 points)

4.  Why does Smith
think that the government should stay out of economic affairs?

(4 points)

5.  Are there any
reasons why Smith’s model of capitalism might not be a successful argument in
favor of the free-market system? Explain.

(4 points)

6.  Smith points out
the possibility of producers contriving to raise prices. Are there other
problems with the free-market system that he did not point out?

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