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.