A Key Principle of Adam Smith's Economic Theory Was That

question 11

Multiple Choice

A key principle of Adam Smith's economic theory was that

• A)human behavior is inherently irrational.
• B)government should not interfere in the economy.
• C)monopolies promote economic well-being.
• D)mercantilism is the only viable economic system.
• E)laissez faire was a dangerous econo-political theory.

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Definitions:

Representativeness Heuristic

A cognitive shortcut that involves judging the probability of an event by how much it resembles what we consider to be a typical example of that event.

Availability Heuristic

A quick-thinking process that depends on the first examples that pop into someone's head when they are considering a particular subject, idea, approach, or choice.

Relative Comparisons

The act of evaluating something in relation to another similar item.

Availability Heuristic

A cognitive shortcut that relies on the immediate examples that come to a person’s mind when evaluating a specific topic, concept, method or decision.