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Explain Why Adam Smith Believed That Competitive Markets Are a Key

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Essay

Explain why Adam Smith believed that competitive markets are a key component of achieving the gains from the invisible hand.


Definitions:

Authority

The power or right to give orders, make decisions, and enforce obedience, often within a specific context or hierarchy.

Personal Values

Fundamental values or ethics that steer a person's actions and choices.

Dominant-Submissive

A social interaction dynamic where one individual exercises control or influence over another, who adopts a yielding or subordinate position.

Active-Passive

A contrast between taking initiative and being reactive or inert in a situation.

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