Adam Smith Believed That Countries Would Prosper If Businesspeople Were

question 225

Multiple Choice

Adam Smith believed that countries would prosper if businesspeople were free to start and run their own businesses. Businesspeople would make a profit by providing the goods, services, and ideas that others in the economy wanted, and they would hire others to help increase those profits, leading to social and economics benefits for many. This idea was called the

• A) kinked demand theory.
• B) invisible hand.
• C) spending multiplier.
• D) demand accelerator.

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Definitions:

Evolutionary Perspective

A theoretical approach in the social and natural sciences that examines psychological structure from a modern evolutionary perspective, it suggests that psychological adaptations evolve to solve recurrent problems in human ancestral environments.

Males

Biologically, males are the sex that produces spermatozoa to fertilize the eggs from females.

Females

Refers to the sex of an organism, or part of an organism, that produces non-mobile ova (egg cells) and typically has XX chromosomes in mammals.

Amniocentesis

A medical procedure used in prenatal diagnosis where a small amount of amniotic fluid is sampled from the amniotic sac surrounding a developing fetus.