Adam Smith & Free Enterprise Review

Front

What type of economic system did Adam Smith support?

Back

a free market system

Front

A philosophy that calls for very little or no government involvement in the economy.

Back

Laissez-Faire

Front

Laissez-faire capitalism as attributed to Adam Smith called for

Back

minimal government involvement in the economy

Front

Adam Smith said that capitalism is the best economic system because of

Back

The opportunity for profit as an economic incentive

Front

What is the “invisible hand theory”?

Back

an economy with competition and free markets are the best.

Front

Adam Smith believed that competition and self-interest act as a(n) ___________ that regulates the free market.

Back

Invisible Hand

Front

Which of the following is NOT true about Adam Smith? He is considered the father of modern economics, He believed in the law of supply and demand, He supported a free market/ free enterprise/ capitalist economy, He thought that a command economy worked best

Back

He thought that a command economy worked best

Front

What book, written by Smith, is considered by many to be the cornerstone of capitalism and was Smith's most famous work?

Back

The Wealth of Nations

Front

Adam Smith believed in free markets and free trade where the government stayed out of the economy as much as possible.

Back

True

Front

What was the main theme of his work?

Back

Economic Freedom