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:

Frontier

The boundary or border between settled and unsettled lands, often associated with the westward expansion of European settlers in North America.

Social Unrest

A condition of dissatisfaction or conflict within a community or society, often leading to demonstrations, protests, or other forms of collective action.

Lochner V. New York

A landmark U.S. Supreme Court case from 1905 that struck down a New York law setting maximum working hours, ruling it as an unconstitutional interference with individual freedom of contract.

Right Of Contract

The legal ability of individuals or entities to enter into binding agreements without coercion or undue influence.