Smith

Adam Smith would most likely agree with which statement?

• Revolution is the only solution to economic problems.

• Five-year plans are necessary in order to industrialize.

• All nations would benefit from an agricultural economy.

• Government should follow a laissez-faire policy.

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

Adam Smith’s Wealth of Nations stressed the importance of

• tradition

• supply and demand

• large corporations

• government ownership

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

• True

• False

One important role that Adam Smith said we need government to fulfill is to finance and plan major public works programs like roads, bridges, canals, etc.

• True

• False

Which book by Adam Smith laid the foundation for modern economics?

• The Wealth of Nations

• The Theory of Moral Sentiments

• The Invisible Hand

• The Principles of Economics

Adam Smith is often associated with which economic concept?

• Communism

• Laissez-faire

• Protectionism

• Mercantilism

What is the 'invisible hand' as described by Adam Smith?

• A government policy

• A market force

• A type of currency

• A trade agreement

Which of the following is a key idea in Adam Smith's economic theory?

• Government intervention

• Free market

• Central planning

• Trade restrictions

Adam Smith's ideas contributed to the development of which economic system?

• Socialism

• Capitalism

• Feudalism

• Communism