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Unformatted text preview: -Creates job, and is expanded upon to provide more goods-Capitalist mentality :-Driven by desire to seek profits-Invent new products (zippers, Velcro, etc)-If good no longer in demand, then shut down and shift resources-Consequences on State intervention-Mercantilism-Large trade; more exports than imports-Accumulation of treasure (Wealth of Nations)-Official monopolies are generated because less competition-Govt choice substitutes for individual choice-Keeps wages low and profits high-The Invisible Hand-Leads to optimal social outcome-Prices fall, wages, innovation, and mechanization rise leading to more efficiently produced goods...
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- Fall '08