Adam Smith and the Wealth of Nations Quiz

Who is known as the father of modern economics?

• Karl Marx

• Adam Smith

• John Maynard Keynes

• Milton Friedman

In which year was The Wealth of Nations published?

• 1825

• 1776

• 1800

• 1750

According to Adam Smith, what are the three most important factors of production?

• Land

• Labor

• Capital

• Technology

What did Adam Smith believe would regulate the market as if by an 'invisible hand'?

• Individuals seeking their own self-interests

• Competition among producers

• Consumer demand

• Government regulations

What is the division of labor according to Adam Smith?

• Specialization of work based on specific activities

• Equal distribution of work among workers

• Random allocation of tasks to workers

• No division of work at all

What did Adam Smith believe about trade among countries?

• It is harmful for the economy

• It should be avoided at all costs

• It is beneficial for all countries involved

• It has no impact on the economy

What did Adam Smith believe would hold producers accountable in a market?

• Government regulations

• Consumer demand

• Competition among producers

• Individuals seeking their own self-interests

What did Adam Smith believe was the role of governments in a free-market economy?

• To have no role at all

• To regulate prices of goods and services

• To control all economic activities

• To enforce contracts and patents, and build public works

What did Adam Smith believe would increase efficiency in production?

• Equal distribution of work among workers

• Random allocation of tasks to workers

• Specialization of work based on specific activities

• No division of work at all

What did Adam Smith believe would benefit society through an individual's self-interest?

• Nothing at all

• Society would also benefit

• Only the individual would benefit

• Society would not benefit