“Who Gets to Decide the Truth.”

  A) The article notes Adam Smith’s “most famous insight [was that] a well structured social order can harness those very traits to promote activity which benefits ourselves by benefitting other.” (See p. 2 of 7) What are those traits? What do we call this insight of Adam Smith? B) What did John Locke mean by Natural Rights? In what way does Locke’s notion of Natural Rights complement Adam Smith’s idea of the Invisible Hand Principle? 3. If the market system is allowed to determine the annual number of houses built in the U.S., will Adam Smith’s Invisible Hand result in the correct number of homes built? Explain why or why not. 4. If the market system is allowed to determine how houses are built in the U.S., will Adam Smith’s Invisible Hand result in homes being built efficiently? Explain why or why not. 5. If the market system is allowed to determine who gets the new houses, will Adam Smith’s Invisible Hand result in the “correct” people moving into a new home each year? Explain why or why not. 6. How would an economist explain the following: A freshman basketball player at Duke University is less likely than a freshman basketball player at USU to stay in college for four years. 7. Using economic concepts, what explains the following, particularly the differences between the player and coach salaries: