What Is the Basic Market Theory Worked Out by Adam

question 62

Multiple Choice

What is the basic market theory worked out by Adam Smith in The Wealth of Nations?

• A) Because the market is efficient and effective if left alone, government should not interfere with its operations.
• B) The market is efficient but needs significant government bolstering to avoid serious downturns, such as the Great Depression.
• C) Markets work best when they are managed by the government to ensure the greatest wealth for the people.
• D) Globalization and the sharing of international markets create the greatest wealth for most nations.
• E) The market is effectively a creation of the state and, as such, should be managed accordingly to create the greatest wealth for its people.

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Definitions:

Avoidance

A behavioral response aimed at evading certain situations, thoughts, or feelings that are perceived as unpleasant or stressful.

Exposure

A therapeutic technique aimed at reducing fear or anxiety by gradually and systematically exposing the person to the feared object or context.

PTSD

Post-Traumatic Stress Disorder, a mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, and severe anxiety.

Ethnic/Racial Minority

An ethnic/racial minority is a group within a country or society that has different national or cultural traditions from the main population and is less in number.