What Was the Central Idea of Adam Smith's Writings

question 47

Multiple Choice

What was the central idea of Adam Smith's writings?

• A)Adam Smith thought mercantilism was the key to national wealth.
• B)He suggested that absolutely no government interference with business was optimal.
• C)Adam Smith advocated for more education for the consumer.
• D)He supported as little government intervention in business as possible.
• E)He wanted an increase in the variety of goods and services available to the public.

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Definitions:

Normal Goods

Goods for which demand increases as the income of the buyer increases, and vice versa.

Income Increase

A rise in the amount of money received, especially on a regular basis, through work or investments.

Substitute

A product or service that can be used in place of another to satisfy the same want or need.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at that price.