Adam Smith

Who developed laissez-faire economics as a en economic philosophy? 

• Adam Smith
• Karl Marx
• John Locke
• Louis XVI

Smith believed that the economy operated according to three natural laws involving this concept...

• self-interest
• compassion
• citizenship
• trustworthiness 

While Adam Smith believed that the government should be involved in all of the following areas EXCEPT: 

• military
• property 
• business
• nothing at all

All of the following are factors of production EXCEPT:

• Land
• Labor
• Capital
• Technology

Laissez-faire capitalism as attributed to Adam Smith called for

• heavy taxation of manufacturers

• strict government control of the economy

• minimal government involvement in the economy

• government investments in major industries

Which characteristic is associated with an economy based on the principles of laissez-faire?

• prices based on supply and demand

• production quotas established by the central government

• distribution of goods determined by the customs of a traditional society

• some goods exchanged for other goods of equal value

What is a key principle of a market economy?

• The means of production are controlled by the state.

• Supply and demand determine production and price.

• Employment opportunities are determined by social class.

• Businesses are owned by the people collectively.

The _______________ is the name for the change from goods being made by hand at home to making them by machine in factories.

• French Revolution
• Machine Revolution
• Industrial Revolution
• Technological Revolution