Asked by Raylee Warren on Apr 28, 2024
Verified
What did Adam Smith argue in The Wealth of Nations?
A) Regulation of trade was the cornerstone of government.
B) The "invisible hand" of the free market directed economic life more effectively and fairly than governmental intervention.
C) Sacrificing for the public good was necessary for a thriving economy.
D) Unregulated economic freedom would lead to the destruction of social harmony.
E) A free market would concentrate wealth in the hands of very few elites.
Adam Smith
An 18th-century Scottish economist and philosopher, best known for his works "The Wealth of Nations," a cornerstone of modern economic theory.
Invisible Hand
A metaphor introduced by Adam Smith to describe the unintended social benefits of individual self-interest actions.
Free Market
An economic system in which prices for goods and services are determined by the open market and consumers, where the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority.
- Acquire knowledge about the impact of real estate control and economic principles like laissez-faire on the growth of American community.
Verified Answer
CH
Caleb HudsonApr 28, 2024
Final Answer :
B
Explanation :
Adam Smith argued in The Wealth of Nations that the "invisible hand" of the free market directed economic life more effectively and fairly than governmental intervention, promoting the idea that individual self-interest in a free market would lead to economic prosperity.
Learning Objectives
- Acquire knowledge about the impact of real estate control and economic principles like laissez-faire on the growth of American community.