Which of the Following Observations Was Made Famous by Adam

question 376

Multiple Choice

Which of the following observations was made famous by Adam Smith in his book The Wealth of Nations?

• A) There is no such thing as a free lunch.
• B) People buy more when prices are low than when prices are high.
• C) No matter how much people earn, they tend to spend more than they earn.
• D) Households and firms interacting in markets are guided by an "invisible hand" that leads them to desirable market outcomes.

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Definitions:

Practical One

Refers typically to a person or approach that focuses on practical actions and solutions rather than theoretical or abstract ideas.

Aristotle

An ancient Greek philosopher and scientist, a student of Plato and teacher of Alexander the Great, known for his contributions to many fields of knowledge.

External Compulsion

A force or influence from outside oneself that pressures or obliges one to act in a certain way, often limiting personal freedom or choice.

Free Of Ignorance

The state of having knowledge or being aware, lacking the absence of understanding or awareness.