Argue the science of economics in the presence of making a profit with scarce resources (Michael Baye) versus Adam Smith view that people decide on the basis of sympathy with an aim for moral approval. And what modern country runs their economy on a "free market" system?© BrainMass Inc. brainmass.com October 9, 2019, 5:37 pm ad1c9bdddf
Economics as a science which explains that scarcity results because natural resources, human resources and capital resources are not available in sufficient quantity to satisfy all wants of the people. In other words resources are limited and wants are unlimited. According to Michael Baye's view on profit, with the availability of limited resources, optimal choices of resources has to be made to earn economic profits. Further he explained that shoppers, merchants and comparison sites are all engaged in a deadlocked game in which no single party can improve its hand given the strategies of the others. This situation is described as a Nash Equilibrium .Specifically; merchants are using what Baye calls "hit-and-run" pricing strategies, varying their prices in order to keep the competition from being able to consistently undercut them.
But Adam Smith divided moral systems into:
(i) Categories of the nature of morality.- These included Propriety, Prudence, Benevolence, and Licentiousness.
(ii) Categories of the ...
The solution describes a "free market" system.