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Explain how Adam Smith describes the market economy and the role of consumers, producers, workers, savers (investors), and borrowers in the market economy.

Respuesta :

Adam Smith described self-interest and competition in a market economy as the "invisible hand" that guides the economy. Consumers are the guiding force in a market economy. Producers use scarce resources to produce goods and services which consumers use to satisfy their wants and needs. For worker, they are not guaranteed work yet must be available on demand for employers. Although, the workers are not employed by the company that benefits from their labor. For savers, the pressure on pension plans has grown dramatically. As for borrowers, they are any agents who have investment opportunities, but who lack the cash to get those projects started.
adefioyelaoye

Adam Smith described the market economy as "invisible hand" which

helps guide the economy.

Who was Adam Smith?

He was a 18th century philosopher and is referred to as the father of

Modern economics as a result of his numerous works.

He said that self-interest and competition in a market economy is

important for any economy to thrive successfully. He also outlined the

roles of consumers, producers, workers, savers (investors), and borrowers

as the driving forces due to the various inputs they have on the economy.

Read more about Adam Smith here https://brainly.com/question/3986852

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