In Which of the Following Ways Would Adam Smith Have

question 90

Multiple Choice

In which of the following ways would Adam Smith have most likely thought about the concept of a living wage?

• A) Smith warned managers to only pursue the pursuit of profits within the law, so he would likely have opposed a livable wage.
• B) Smith warned managers not to negotiate wages below subsistence levels, so he would likely have supported some version of a living wage.
• C) Smith supported regulation by the government of worker's welfare, so he would have supported a livable wage.
• D) Smith felt that high bargaining power on the part of workers was damaging to competition, and so he would have opposed a livable wage.

---

Definitions:

Income Elasticity

A measure of how much the demand for a product changes in response to a change in consumers' income.

Demand

The total quantity of a good or service that consumers are willing and able to purchase at a given price level in a given market.

Health Care

The preservation or enhancement of well-being through the avoidance, identification, management, recuperation, or healing of diseases, ailments, injuries, and other physical and mental conditions in individuals.

Price Elasticity

A measure of the sensitivity of the quantity demanded or supplied of a good to a change in its price.