Adam Smith and Economics Quiz

Why is Adam Smith often referred to as the "Father of Economics"?

• He was the first person to define the term "economics"

• He introduced the concept of the division of labor

• He wrote the book "The Wealth of Nations" which laid the foundations of classical economics

• He was the president of a famous economic institution

What is the main premise of Adam Smith's book, "The Wealth of Nations"?

• The importance of government intervention in the economy

• The role of central planning in economic prosperity

• The benefits of a free market on society and the creation of a wealthy nation

• The necessity of monopolies for economic growth

What term did Adam Smith define to explain why he believed a free market would benefit society and create a wealthy nation?

• The invisible hand

• Laissez faire

• Supply and demand

• Comparative advantage

What does the term "laissez faire" refer to in the context of Adam Smith's economic philosophy?

• A policy of minimal governmental interference in the economic affairs of individuals and society

• A system where the government controls all economic activities

• The practice of protectionism in international trade

• The division of labor in industrial production

According to Adam Smith, which of the following is NOT one of the key elements that drives a successful economy?

• Self-interest

• Competition

• Division of labor

• Heavy government regulation

Who is considered the father of economics?

• John Maynard Keynes

• David Ricardo

• Karl Marx

• Adam Smith

What economic system was prevalent in England before the shift to a free market economy?

• Capitalism

• Socialism

• Mercantilism

• Feudalism

What is the economic concept that Adam Smith is most associated with?

• The Invisible Hand

• The Labor Theory of Value

• Comparative Advantage

• The Circular Flow of Income

What does the term "laissez faire" suggest about government involvement in the economy?

• Active regulation and control

• High taxation and spending

• Minimal intervention and regulation

• Complete ownership of production

According to Adam Smith, what should be the main role of government?

• To redistribute wealth

• To protect people's property and provide a military

• To control the means of production

• To manage trade and industry