Asked by Tabitha Mooney on May 01, 2024
Verified
Competition,according to Adam Smith,would lead to consumers receiving the best possible products and prices because _____.
A) government interference in economic activity would be maximized
B) less efficient producers would be driven out of the market
C) increased supply of raw materials would lead to increased production
D) natural resources would be utilized more efficiently
Government Interference
Actions taken by a government to regulate, control, or participate in economic activities, often affecting market operations.
Natural Resources
Natural resources are materials or substances that occur in nature and can be used for economic gain, such as forests, minerals, and water.
- Elucidate the fundamental notions of capitalism as proposed by Adam Smith, encompassing the invisible hand and the role of competition.
Verified Answer
MG
Mahathi GangavarapuMay 02, 2024
Final Answer :
B
Explanation :
Adam Smith argued that competition would lead to the best products and prices for consumers because it would drive less efficient producers out of the market, ensuring that only the most efficient and high-quality producers survive.
Learning Objectives
- Elucidate the fundamental notions of capitalism as proposed by Adam Smith, encompassing the invisible hand and the role of competition.