According to Adam Smith, What Is the Primary Source of a Nation's

question 269

Multiple Choice

According to Adam Smith, what is the primary source of a nation's wealth?

• A) The amount of gold and silver in the government's possession.
• B) A spirit of cooperation in which people share according to their means.
• C) Strong central planning authorities.
• D) The people's ability to produce products and trade in free markets.

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Definitions:

Risks

Pertains to the potential for losses or other adverse outcomes arising from uncertainties in decision-making or future events.

Floating Exchange Rate

A currency system that allows the value of a currency to fluctuate according to the foreign exchange market.

Market Forces

The economic factors affecting the price and availability of goods and services, including supply and demand.

National Governments

The central governing authorities responsible for managing a nation's internal and external affairs, including implementing laws, policies, and regulations.