QUESTION 1 business I Since in the modern world all world of

QUESTION 1 business/ I) Since, in the modern world, all world offers a huge number of Which of the following are problems with (that is, objections to) the Invisible Hand argument for the individual view of available land has been claimed, the Lockean proviso is not met (there is not as much and as good left for othersy nThe modern ever-changing products, and consumers would need need better than the government does a vast amount of information to assess these products rationally Il) People often know what they want or O I only O Il only O Ill only O I and IlI

Solution

According to invisible hand theory, the unobserved market force equalizes the demand and supply of goods in a free market automatically by an invisible hand.

i) When all available land has been claimed and there is not as much as lands left for others creates a shortage. That is demand is more than supply. Now the invisible hand forces the price upward to decrease the demand which again establishes the market equilibrium.

ii) The modern world offers a huge number of ever-changing products. But the consumer does not have much information to asses these products. Here invisible hand cannot solve this problem. Government intervention is needed by providing enough information about these products.

iii) People know better than government what they need so there is no need for government information. The market can solve the problem by changing demand and supply.

Therefore the second option is correct.