The Scottish philosopher Adam Smith argued in 1776 that A. guilds would do a better job of coordinating the activities of buyers and sellers than prices could. B. prices would do a better job of coordinating the activities of buyers and sellers than markets could. C. prices would do a better job of coordinating the activities of buyers and sellers than guilds could. D. unions would do a better job of coordinating the activities of buyers and sellers than prices could.

Question

Ellis Haas

Social Studies

12 March, 02:42

The Scottish philosopher Adam Smith argued in 1776 that A. guilds would do a better job of coordinating the activities of buyers and sellers than prices could. B. prices would do a better job of coordinating the activities of buyers and sellers than markets could. C. prices would do a better job of coordinating the activities of buyers and sellers than guilds could. D. unions would do a better job of coordinating the activities of buyers and sellers than prices could.

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Nathanial Patel · Answer 1

B. prices would do a better job of coordinating the activities of buyers and sellers than markets could.

Explanation:

In 1776, the Scottish economist and philosopher also known as the father of economics, suggested that price was better left to produce better market results than the intervention of guilds.

He was of the opinion that price control and regulations by guilds were disruptions to market play and would not be as efficient as allowing price be determined by the market (buyers and sellers). Adam was a pioneer of the free market economic theory.