MACRO MODULE 2 WRITTEN EXERCISE

Written Exercise

1. Explain this quote from Adam Smith: "It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner but from their regard to their own interest."
2. Why is private property an essential characteristic of a capitalistic system?
3. Why is motivation of self-interest essential to the capitalistic market system, and why is competition in relation to self-interest in a market system so essential?

450 words