Adam Smith Believed That Countries Would Prosper If Businesspeople Were

question 225

Multiple Choice

Adam Smith believed that countries would prosper if businesspeople were free to start and run their own businesses. Businesspeople would make a profit by providing the goods, services, and ideas that others in the economy wanted, and they would hire others to help increase those profits, leading to social and economics benefits for many. This idea was called the

• A) kinked demand theory.
• B) invisible hand.
• C) spending multiplier.
• D) demand accelerator.

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Definitions:

Axosomatic Synapses

Synaptic connections between the axon terminals of one neuron and the soma (cell body) of another, facilitating neuronal communication.

Cell Body

The part of a neuron that contains the nucleus and most of the cytoplasm and organells.

Excitatory

Pertaining to or causing excitation, often describing neurotransmitters or synaptic inputs that enhance the activity of neurons.

Inhibitory

Characteristic of a substance or process that decreases the activity or efficiency of a neuron or an enzyme, typically reducing or stopping certain signals or reactions.