Course
ECON312N Principles Of Economics
Required Resources
Read/review the following resources for this activity:
- Textbook: Chapter 1, 2
- Lesson
- Minimum of 1 scholarly source (in addition to the textbook)
Introduction
Select and respond to one of the following options:
- Option 1: What assumptions about the economy must be true for the invisible hand to work? To what extent are those assumptions valid in the real world? Do these conditions hold in the social service industries?
- Option 2: As illustrated in the text, society must make trade-offs in terms of what society produces. Examine these trade-offs in the context of the production possibilities frontier. Use a social service industry such as healthcare as an example. Make sure to address productive efficiency, allocative efficiency, and opportunity costs.
Follow-Up Post Instructions
Respond to at least one peer. Respond to a peer who chose the option you did not choose. Further the dialogue by providing more information and clarification.
Writing Requirements
- Minimum of 2 posts (1 initial & 1 follow-up)
- Minimum of 2 sources cited (assigned readings/online lessons and an outside scholarly source)
- APA format for in-text citations and list of references
Grading
This activity will be graded using the Discussion Grading Rubric. Please review the following link:
- Link (webpage): Discussion Guidelines
Course Outcomes (CO): 4, 6, 7
Due Date for Initial Post: By 11:59 p.m. MT Recommended by Wednesday
Due Date for Follow-Up Posts: By 11:59 p.m. MT on Sunday
ANSWER
The invisible hand theory by Adam Smith assumes that people are rational. When people operating in an economy are rational, they are sensible and make decisions after considering intelligent thinking and not emotions. Another assumption of the invisible hand theory is that a free market is capable of bringing itself to equilibrium without any influence from the government or other institutions (OpenStax, 2019).……please click the icon below to purchase the answer at $5