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

question 62

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 what Smith wanted to convey in this statement?

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

---

Definitions:

Screening Techniques

Methods used to evaluate, filter, or select individuals or information based on specific criteria.

Application Process

The series of steps required to apply for a job, program, or service.

Retrieve

Retrieve involves obtaining or getting back something that has been lost or is not currently in one's possession.

Website

A set of related web pages located under a single domain name, typically produced by a single entity, and accessible via the Internet.