Read Each Excerpt

question 2

Multiple Choice

Read each excerpt.Then write the letter of the better summary, explaining why you chose it in the blanks that follow 1.Invisible hand of the market The first two words of this phrase, "invisible hand," come from the book The Wealth of Nations (1776) written by the Scottish economist Adam Smith.The rest of the phrase was added over time.Smith viewed self-interest as the "invisible hand" that would automatically create a balance between supply and demand, making any other kind of regulation or control unnecessary.Smith only uses the phrase once in his book.As a matter of fact, he was never a total believer in the idea of the market automatically regulating itself through the forces of supply and demand.However, the phrase seems to have taken hold in the imagination of many.It survives to this day and is used whenever anyone wants to argue for or against the notion that those in business can do without outside regulation or interference."Like many in corporate management, she was opposed to government regulation, believing instead in the invisible hand of the market."
Summary

• A)Adam Smith's book The Wealth of Nations (1776) gave us the first two words of the phrase "the invisible hand of the market." The rest of the phrase was added later, and it suggests that individual self-interest could automatically regulate the market.Although Smith never fully believed in the idea, many other people do and the phrase is still a popular one.
• B)Adam Smith's phrase "the invisible hand of the market" seized the public's interest when it was first used in Smiths book The Wealth of Nations .If anything, the phrase's popularity has only increased, as more and more people seem to be opposed to the idea of government intervention. They prefer to believe that enlightened self-interest will naturally regulate market forces.

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Definitions:

American Firms

Companies or businesses that are based in the United States, operating either domestically or internationally, and governed by American laws and economic policies.

Personal Responsibility and Work Opportunity Reconciliation Act

A 1996 US federal law aimed at reforming welfare programs, encouraging work, and reducing dependency on government assistance.

Welfare

Government programs designed to support the well-being of the population by providing financial aid, healthcare, and other services to those in need.

Bill Clinton

An American politician who served as the 42nd president of the United States from 1993 to 2001, known for his centrist policies and leadership during the country's longest period of peacetime economic expansion.