,Adam Smith Made All of the Following Arguments for Laissez-Faire

question 45

Multiple Choice

,Adam Smith made all of the following arguments for laissez-faire capitalism,EXCEPT which of the following?

• A)The desire for profit is the invisible hand that guides a capitalist system.
• B)The government should not be allowed any role whatsoever in the economy.
• C)Private firms should be left alone to make their production and distribution decisions.
• D)Firms will try to use as few resources as possible in order to keep their prices low.
• E)Certain areas of the economy were better run by government agencies.

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Definitions:

Id

In psychoanalytic theory, the part of the human psyche that is the source of instinctual impulses and demands for immediate satisfaction of primitive needs.

Superego

The part of personality that, according to Freud, represents internalized ideals and provides standards for judgment (the conscience) and for future aspirations.

Reality Principle

An ego function to delay gratification of the id’s desires until an appropriate object and mode of satisfaction is found in the real world.

Pleasure Principle

A psychological concept suggesting individuals seek immediate gratification of needs and desires to avoid pain.