explain how Adam Smith describes the market economy and role of consumers, producers, workers, savers (investors), and borrowers in the market economy.

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Business

Isaac Stafford

20 September, 06:13

explain how Adam Smith describes the market economy and role of consumers, producers, workers, savers (investors), and borrowers in the market economy.

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Easton Robinson · Answer 1

As described below.

Explanation:

As explained by Adam smith a market economy in his wealth of nations. Which is an interplay of the supply and demand, where the role of the customer's producers and the worker's investors and the borrows all follow the economic system and the market as an invisible hand, that comes from the producers and he consumers interact indirectly and directly As the consumer and producers engage in commercial production thus the idea of a free-market took place. The government interferes with the services where unwanted shortages and the surplus tends to occur. The free markets to regulate themselves by means of competition, among the workers and the borrowers.