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Notes on video lecture:
Adam Smith and the Invisible Hand
Notes taken by Edward Tanguay on September 1, 2014 (go to class or lectures)
Choose from these words to fill the blanks below:
profit, price, socially, conditions, self, three, change, free, maximization, blind, globalists, entry, mercantilism, 1746, others, Oxford
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Adam Smith (1723-1790)
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studied in Glasgow and             
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         returned to Scotland
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taught at Edinborough and Glasgow
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concept of the Invisible Hand
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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
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the competition between buyers and sellers, each motivated by the                          of their own satisfaction that serves to stimulate innovation and drive down costs
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a          regulating system
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didn't require governments to direct it to                  beneficial ends
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Adam Smith only mentioned the term "Invisible Hand" in his writings            times
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never linked it to the          market as directly as suggested above
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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)
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             developed the concept Invisible Hand for him
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the market will decide the amount that is produced and the            it is sold at
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competition among producers will stimulate efficiency
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maximize profits
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prompt lower prices
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invite investment
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free marketeers and                      adhered to this concept
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however, there are                      which need to exist for the Invisible Hand to work
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perfect knowledge between consumers and producers
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no            barriers to markets
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no transport or other transaction costs
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but none of these conditions exist in practice
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this concept is            to size and power
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different players in the market
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different capacities to withstand             
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different dependencies on the market

Vocabulary:

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