In Which of the Following Situations Would Adam Smith Argue

question 87

Multiple Choice

In which of the following situations would Adam Smith argue that government intervention in the marketplace is justified?

• A) Many food items begin to arrive from abroad, and their cheap price is putting many local farmers out of work.
• B) A general economic downturn has occurred, leaving many out of work.
• C) A clothing manufacturer invents a new machine that makes it much more competitive than its rivals.
• D) Two growing cities have no road to connect them and no private party is seeking to build one.

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Definitions:

Faxing

The transmission of scanned documents or texts over a telephone line, typically using a facsimile machine.

Instant Messaging

A form of online communication that allows real-time text transmission over the internet or a computer network.

Media Richness

A theory that describes the capacity of a communication medium to accurately reproduce the information sent over it.

Advertising

The action of calling public attention to products, services, needs, etc., especially by paid announcements in print, broadcast, or online media.