Download STUDY QUESTIONS “ADAM SMITH`S INVISIBLE HAND

STUDY QUESTIONS
“ADAM SMITH’S INVISIBLE HAND ARGUMENT>
JOHN D. BISHOP
1. Briefly state the “invisible hand” theory in your own words.
2. Two advocates of the “invisible hand” theory who are quoted in the article encourage
a “deliberate amorality” in the executive suite. How do they justify this?
3. What does Milton Friedman see as the social responsibility of corporations?
4. According to Bishop, what does Adam Smith say about laws or regulations proposed
by those who live by profit?
5. According to Bishop, when corporations combine to restrict wages, does Smith see
this as an infringement on the free market? As an example, consider outsourcing jobs to
companies in cheaper wage countries
a) no
b) yes
6. According to Bishop, how did Adam Smith view international investment as opposed
to investing only in one’s own country? Did he suggest that was the best way to increase
national wealth?