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:

Consumption And Investment

Components of an economy where consumption refers to the use of goods and services for immediate satisfaction, and investment involves spending on capital goods to yield future returns.

Production Possibilities Curve

A graphical representation showing the maximum combinations of goods or services that can be produced with a fixed amount of resources.

Operating Inefficiently

Conducting business in a manner that does not maximize output or profits relative to input and resources.

Technological Advance

The development and application of innovative tools, machines, systems, and methods to improve processes, productivity, and efficiency.