Question
The textbook discusses some of the advantages and disadvantages of capitalism. One of the advantages is the tendency of the so-called invisible hand of the
The textbook discusses some of the advantages and disadvantages of capitalism. One of the advantages is the tendency of the so-called invisible hand of the market to distribute goods and services in an optimally efficient way, whereas the so-called visible hand of government regulation may often be less efficient. The challenge here however is that for a free market to function well - with minimal regulation - a generally ethical and responsible business culture is required. Can you think of a specific example where ethics and socially responsible business practices can help preserve market freedom, by reducing the need for corrective government regulation? And conversely, where unethical/socially irresponsible business practices cre ate a greater need for the government to step in?
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