Adam Smith's Wealth of Nations Argued for Promotion of Liberalism

question 52

Multiple Choice

Adam Smith's Wealth of Nations argued for promotion of liberalism in an economic model that emphasized

• A) mercantilism.
• B) capitalism.
• C) communism.
• D) socialism.
• E) none of these.

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Definitions:

Consumption

Consumption of goods and services within a household.

Disposable Income

Net financial assets for households dedicated to spending and saving, subsequent to income tax reductions.

Credit Availability

The ease with which individuals and businesses can obtain loans and other forms of credit from financial institutions.

Liquid Assets

Assets that can be quickly converted into cash with little impact on their value.