Check In: Laissez Faire Economics

Who became the leading advocate of laissez-faire economics?

• Thomas Malthus

• David Ricardo

• Adam Smith

• Karl Marx

Answer explanation

Adam Smith became the leading advocate of laissez-faire economics. His influential book 'The Wealth of Nations' promoted free markets and limited government intervention.

What did Adam Smith analyze in his book The Wealth of Nations?

• Definition and creation of wealth

• Social hierarchies

• Political systems

• Religious beliefs

Answer explanation

Adam Smith analyzed the definition and creation of wealth in his book The Wealth of Nations.

What is the meaning of laissez-faire economics?

• Free market economy

• Protectionism

• Government intervention in business

• Regulation of trade

Answer explanation

Laissez-faire economics means a free market economy, where there is minimal government intervention in business and trade regulation.

Who published An Essay on the Principle of Population in 1798?

• David Ricardo

• Thomas Malthus

• Adam Smith

• Karl Marx

Answer explanation

An Essay on the Principle of Population was published by Thomas Malthus in 1798. Malthus argued that population growth would outpace food production, leading to poverty and famine.

What did Thomas Malthus believe would always grow faster than food production?

• Population

• Technology

• Trade

• Government influence

Answer explanation

Thomas Malthus believed that population would always grow faster than food production.

What did David Ricardo argue would keep wages low?

• Natural economic forces

• Labor unions

• Government regulations

• Technological advancements

Answer explanation

David Ricardo argued that wages would be kept low by natural economic forces.

What did laissez-faire thinkers oppose in the economy?

• Minimum wage laws

• All of the above

• Better working conditions

• Government relief for poor workers

Answer explanation

Laissez-faire thinkers opposed minimum wage laws, better working conditions, and government relief for poor workers. All of the above choices are correct.

What did laissez-faire thinkers believe was the best cure for poverty?

• Government relief

• Labor unions

• Social welfare programs

• Unrestricted free market laws

Answer explanation

Laissez-faire thinkers believed that unrestricted free market laws were the best cure for poverty.

What did Adam Smith call the ability of the marketplace to respond to public demand without government involvement?

• Market manipulation

• Government control

• Regulatory mechanism

• Invisible hand

Answer explanation

Adam Smith referred to the ability of the marketplace to respond to public demand without government involvement as the 'invisible hand'.

What did David Ricardo's theory of The Iron Law of Wages indicate?

• Wages would always rise

• Wages would always be fair

• Wages would always be low

• Wages would always be high

Answer explanation

David Ricardo's theory of The Iron Law of Wages indicated that wages would always be low.