In the Wealth of Nations, Adam Smith Proposes That the Government

question 45

Multiple Choice

In The Wealth of Nations, Adam Smith proposes that the government should

• A) refrain from interfering in business.
• B) carefully regulate business.
• C) leave business alone, except for enacting protective tariffs.
• D) protect workers.
• E) carefully allocate resources to ensure their best possible use.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market equilibrium.

Surplus

An excess amount of something, often referring to goods, services, or resources that exceed what is needed or used.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to a situation where there is no tendency for the price to change unless external factors intervene.

Government Imposes

Measures or regulations put in place by the government that can impact various aspects of economic and social life.