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:

Cognitive Functioning

The mental processes that involve the ability to think, perceive, reason, remember, and problem-solve.

Classically Conditioned

The process by which an automatic conditioned response is paired with a specific stimulus through association over time.

Stimulus Events

External or internal occurrences that elicit responses from an organism or cognitive system.

Repetitive Stimulus

A stimulus presented repeatedly to a subject, often used in experiments to measure response habituation or sensitization.