s monopoly a good example of competitive free enterprise

'It is not from the benevolence (kindness) of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.' Adam Smith described it this way in his book, The Wealth of Nations: In fact, most of the economic activity we see around us is the result of self-interested behavior. You go to school so you can get a better job someday and earn more money to buy the things you want. You go to work because you want to get paid so you can buy the things you want. To be self-interested simply means that you seek your own personal gain. Why do you go to work? Why do you go to school? There may be many reasons, but at their core you probably go to work and school because you are self-interested.

Self Interest is the motivator of economic activity. The role of self interest and competition was described by economist Adam Smith over 200 years ago and still serves as foundational to our understanding of how market economies function. In this type of economy, two forces - self-interest and competition - play a very important role. It is a system in which the government plays a small role. Subscribe to the Economic Lowdown Podcast Series on:Ī market economy is an economic system in which individuals own most of the resources - land, labor, and capital - and control their use through voluntary decisions made in the marketplace. Learn more about the Q&A Resources for Teachers and Students » More episodes:

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S monopoly a good example of competitive free enterprise