Which of the Following Is True of Adam Smith's View

question 18

Multiple Choice

Which of the following is true of Adam Smith's view of markets and resource allocation?

• A) Markets allow decentralized decision making.
• B) Markets discourage innovation.
• C) Efficient markets depend on the goodwill of individuals.
• D) Markets are usually inefficient in allocating scarce resources to the society.

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Definitions:

Member Nations

Countries that are part of an international organization or agreement and agree to abide by its terms.

GATT

Stands for the General Agreement on Tariffs and Trade, which was a multilateral agreement aiming to reduce tariffs and other trade barriers internationally until it was replaced by the WTO.

Worldwide Tariffs

Taxes imposed by countries on imported goods in order to protect domestic industries or to generate revenue.

Rounds

Repeated sequences or stages of activity, often used in the context of funding phases for startups.