What Did Adam Smith Argue in the Wealth of Nations

question 2

Multiple Choice

What did Adam Smith argue in The Wealth of Nations ?

• A) Self-interest acted as an "invisible hand" in the marketplace, automatically regulating the supply of and demand for services.
• B) Mechanization would become the "invisible hand" and automation would eliminate human labor.
• C) Wealth should be distributed evenly throughout society.
• D) Inexorable natural laws controlled the social order.
• E) A single tax would solve the nation's uneven distribution of wealth.

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Definitions:

All-Natural Ice Cream

Ice cream made only with natural ingredients, without artificial flavors, colors, or preservatives.

Market Price

The contemporary market value at which a service or asset is accessible for sale or purchase.

Perfect Competition

A market structure characterized by a large number of small firms, homogeneous products, and free entry and exit, making firms price takers.

Average Total Cost

The total cost of production divided by the quantity produced, indicating the average cost of producing each unit of output.