Adam Smith Advocated Laissez-Faire Because He Believed It Was in the Interest

question 77

Multiple Choice

Adam Smith advocated laissez-faire because he believed it was in the interest of:

• A) capitalists, whom he regarded as the most dynamic and progressive element in society.
• B) the proletariat, who would receive higher wages.
• C) the government, which would profit from higher taxes.
• D) society as a whole.

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Definitions:

Macroeconomic Analysis

The study of the behavior, structure, and decision-making of an economy as a whole, including topics like inflation, unemployment, and economic growth.

Microeconomic Analysis

The study of the behavior of individuals and firms in making decisions regarding the allocation of limited resources.

Household Income

The total amount of monetary earnings and benefits received by all members of a household.

Taxes

Essential economic impositions or various kinds of levies exacted from a taxpayer by a state institution to underwrite the expenses of government and assorted public outlays.