How much attention are you giving to Adam Smith, Friedrich Hayek and Karl Marx?Watch
This is under Edexcel btw
I normally don't give them much attention, but any questions about government intervention, ill always refer to Adam Smith and his invisible hand (determining free market equilibrium price) before I get into the for's and againsts
So you start off government intervention questions with Adam Smith? How does that work? Do you say something like how the invisible hand led to a misallocation of resources?
But yeah, so id say, Adam smith would state that the market should be left to the free market to determine its own equilibrium, in which case the government wouldn't need to intervene. However we can see from that in this market, there has been market failure and a misallocation of resources, so government intervention may be needed to correct the market failure.