Adam Smith Stated, "The Man of System Is Apt to Be

question 65

Multiple Choice

Adam Smith stated, "The man of system is apt to be very wise in his own conceit. He seems to imagine that he can arrange the different members of a great society with as much ease as the hand arranges the different pieces upon a chess-board." Which is true of this statement?

• A) Keynes would tend to agree with the statement; Heyek would disagree with it.
• B) Keynes would tend to disagree with the statement; Hayek would agree with it.
• C) As the rap video indicates, both Keynes and Hayek strongly agree with this statement.
• D) As the rap video indicates, both Keynes and Hayek strongly disagree with this statement.

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Definitions:

Oligopolist

A market participant in an oligopoly, a market structure dominated by a small number of large firms, influencing pricing and competition.

Cartel

An association of independent businesses organized to control production, pricing, and marketing of goods to limit competition.

Competitors

Entities or firms in the same industry or market that offer similar goods or services to consumers.

Herfindahl-Hirschman Index

A measure of market concentration used to determine the level of competition within an industry, calculated by summing the squares of the market shares of each firm within the sector.