Which of the Following Statements Reflects Adam Smith's Important Insight

question 150

Multiple Choice

Which of the following statements reflects Adam Smith's important insight into marketplace behavior?

• A) Society benefits when people and firms pursue their own self-interests.
• B) Markets are usually an inefficient way of organizing economic activity.
• C) Greedy, self-interested behavior needs to be constrained to ensure strong economic growth.
• D) Trade restrictions on imported goods increase domestic employment.

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Definitions:

Inconsistency

The state of being inconsistent or not staying the same across different situations or over time.

Consistency

The characteristic of being reliable or uniform over a period of time, often referred to in the context of behavior, attitudes, or performance.

Emotional Instability

A trait characterized by rapid and intense emotional changes, often part of personality disorders.

Situationists

Advocates of the theory that behavior is determined more by situations and environmental factors than by innate traits.