In the Wealth of Nations (1776),Adam Smith Made All of the Following

question 2

Multiple Choice

In The Wealth of Nations (1776) ,Adam Smith made all of the following arguments for laissez-faire capitalism,EXCEPT which of the following?

• A) The desire for profit is the invisible hand that guides a capitalist system.
• B) The government should not be allowed any role whatsoever in the economy.
• C) Private firms should be left alone to make their production and distribution decisions.
• D) Firms will try to use as few resources as possible in order to keep their prices low.
• E) Certain areas of the economy were better run by government agencies.

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Definitions:

Special Order

A special order refers to a one-time purchase order often at a discounted price, usually for large quantities that is outside the normal scope of operations.

Direct Labor Hours

Total working hours logged by employees who are intimately involved with the production operations.

Profitable Use

The utilization of resources or assets in a manner that generates a significant positive return or profit.

Insufficient Capacity

A situation where a company does not have enough resources, such as manpower or machinery, to meet current or future production demands.