Adam Smith Said, "It Is the Maxim of Every Prudent

question 15

Multiple Choice

Adam Smith said, "It is the maxim of every prudent master of a family never to attempt to make at home what it will cost him more to make than to buy. The tailor does not attempt to make his own shoes, but buys them of the shoemaker. The shoemaker does not attempt to make his own clothes, but employs a tailor." Which of the following concepts best illustrates Smith's intent with this statement?

• A) comparative advantage
• B) incentives matter
• C) scarcity
• D) production possibilities frontier

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Definitions:

Weight Gain

An increase in body weight, which can be due to muscle mass, fat deposits, or fluid retention.

Continue Smoking

The ongoing act of smoking tobacco or other substances despite being aware of the harmful health effects associated with the habit.

Older Smokers

Individuals of advanced age who engage in the habit of smoking tobacco, facing increased health risks.

Younger Smokers

Individuals, typically adolescents or young adults, who engage in the habit of smoking tobacco products.