Social Studies 9

Adam Smith observed that individuals act in their ____ and make goods and services that society requires.

• social responsibility
• personal gain
• collective benefit
• self-interest

Adam Smith published a book entitled The Wealth of Nations where he formulated his ____.

• theory of supply and demand
• theory of economic liberalism
• principle of mercantilism
• concept of market socialism

It is a branch of economics concerned with the behavior of individual entities.

• Microeconomics

• Macroeconomics

Individual decision-making in relation to consumption and expenditure

• Microeconomics

• Macroeconomics

It is concerned with the overall performance of the economy

• Microeconomics

• Macroeconomics

It is related government policymaking with respect to tax collection

• Microeconomics

• Macroeconomics

According to Adam Smith, markets should be ____ from government reactions to allow the natural interaction of market factors.

• regulated
• controlled
• restricted
• free

When the self-interested individuals that make up society are allowed to participate in the free market, they unknowingly bring about beneficial social and economic outcomes. This concept is called ____.

• the invisible hand
• the law of supply and demand
• the social contract
• the market equilibrium

Free trading and competition enable ____ prices of goods and services for consumers.

• fixed
• lower
• higher
• unstable

Smith believed that government participation in society must be ____ to keeping order, building infrastructures, maintaining the country's defense, and promoting education.

• unrestricted
• optional
• limited
• excessive