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:

Competitive Market

A market structure where many firms offer products or services that are similar, allowing consumers to have choices, driving prices down.

Resource Use

The way in which human societies utilize natural resources to fulfill their needs and wants.

Pollution

The introduction of harmful substances or products into the environment, causing adverse effects on living organisms and ecosystems.

Property Rights

Legal rights to own and use property, including rights to exclude others from it, emphasizing the foundation of trade and investment.