Which of the Following Observations Was Made Famous by Adam

question 376

Multiple Choice

Which of the following observations was made famous by Adam Smith in his book The Wealth of Nations?

• A) There is no such thing as a free lunch.
• B) People buy more when prices are low than when prices are high.
• C) No matter how much people earn, they tend to spend more than they earn.
• D) Households and firms interacting in markets are guided by an "invisible hand" that leads them to desirable market outcomes.

---

Definitions:

Stare Decisis

A legal principle ensuring that judges are bound to follow precedents set by previous decisions in similar cases.

Administrative Law

Administrative law governs the activities of administrative agencies of government, including rule making, adjudication, or the enforcement of a specific regulatory agenda.

Government Agency

A government agency is an organization run by the government to carry out specific functions or services following certain regulations.

U.S. Constitution

The foundational legal document establishing the framework of government and fundamental laws of the United States of America.