Adam Smith Argued That Each Person in a Competitive Market

question 349

Multiple Choice

Adam Smith argued that each person in a competitive market is led to promote the

• A) efficient use of society's resources, because each person's intention is to make society better off.
• B) efficient use of society's resources, even though it is no person's intention to make society better off.
• C) inefficient use of society's resources, even though each person's intention is to make society better off.
• D) inefficient use of society's resources, because it is no person's intention to make society better off.

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Definitions:

Investment

The allocation of resources, usually capital, in the expectation of generating an income, profit, or capital appreciation.

Interest Rate

The share of a loan subjected to interest charges for the borrower, often expressed as an annual percentage of the total loan that is yet to be paid.

Annual Payment

A payment made once a year, often in the context of loans, leases, or insurance policies.

Investment

The allocation of resources, usually money, in order to generate income or profit.