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Notes on video lecture:
Adam Smith and the Invisible Hand
Choose from these words to fill the blanks below:
self, profit, change, three, 1746, blind, price, free, others, mercantilism, Oxford, globalists, socially, conditions, maximization, entry
Adam Smith (1723-1790)
studied in Glasgow and             
         returned to Scotland
taught at Edinborough and Glasgow
concept of the Invisible Hand
forces that allow a system that is fueled by personal satisfaction and the pursuit of              to produce results that are beneficial for a society as a whole
the competition between buyers and sellers, each motivated by the                          of their own satisfaction that serves to stimulate innovation and drive down costs
a          regulating system
didn't require governments to direct it to                  beneficial ends
Adam Smith only mentioned the term "Invisible Hand" in his writings            times
never linked it to the          market as directly as suggested above
he used the term in the case to sell at home or abroad in an attack on                          (governmental regulation of a nation’s economy for the purpose of augmenting state power at the expense of rival national powers)
             developed the concept Invisible Hand for him
the market will decide the amount that is produced and the            it is sold at
competition among producers will stimulate efficiency
maximize profits
prompt lower prices
invite investment
free marketeers and                      adhered to this concept
however, there are                      which need to exist for the Invisible Hand to work
perfect knowledge between consumers and producers
no            barriers to markets
no transport or other transaction costs
but none of these conditions exist in practice
this concept is            to size and power
different players in the market
different capacities to withstand             
different dependencies on the market


collusion, n. secret or illegal cooperation or conspiracy, especially in order to cheat or deceive others  "Lack of knowledge between consumers and producers, entry barriers to markets, and transport and transaction costs generally lead to collusion and cartels."
Adam Smith and the Invisible Hand