Which of the Following Observations Was Made Famous by Adam

question 57

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 as if by an 'invisible hand'

---

Definitions:

Aptitude Test

An examination designed to measure an individual’s potential to acquire skills or knowledge.

Expected Performance

The anticipated level of performance or achievement based on standards or prior outcomes.

Single-case Design

An experimental research design focusing on the response of a single subject to a controlled intervention or treatment.

Across Subjects

Across subjects refers to a research design approach where comparisons are made between different individuals who are exposed to varying experimental conditions.