Adam Smith's Wealth of Nations Emphasized

question 39

Multiple Choice

Adam Smith's Wealth of Nations emphasized

• A) how free markets produce socially efficient outcomes.
• B) that Scotland produced several key technological innovations.
• C) that the government should intervene to smooth business cycles.
• D) the existence of externalities.
• E) mercantilism.

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Definitions:

Regressive

A term often used in taxation to describe a situation where the tax rate decreases as the taxable amount increases, placing a higher relative burden on lower earners.

Top Income Levels

Refers to the highest segment of earners in an economic distribution, often associated with a significant proportion of the total income of a society.

Progressive

Pertaining to a form of taxation in which the tax rate increases as the taxable amount increases, typically applied to income tax.

Regressive

A term describing a tax system where the tax rate decreases as the taxable amount increases, imposing a greater burden on lower-income earners.