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:

Monitoring and Recording

The process of systematically observing and documenting activities, behaviors, or phenomena, often for analysis or regulatory compliance.

Case Study

An in-depth study of a particular situation, phenomenon, or individual, often used in psychology, sociology, and business to understand complex issues.

Extreme Fear

An intense emotional response to perceived threats, which can be debilitating and exceed normal fear or anxiety levels.

Religious Beliefs

Specific systems of faith and worship, often involving a code of ethics and a philosophy of life.