Worksheets8-23-26-2024 Adam Smith
Total questions: 23
Worksheet time: 12mins
What book, written by Smith, is considered by many to be the cornerstone of capitalism and was Smith's most famous work?
The Wealth of Nations
Capitalism and its Implications
Economics and Political Systems
Smith argued that a free exchange should be created because ...........
countries can import goods
it promotes fairness
countries are better off from the exchange.
What type of economic system did Adam Smith support?
a free market system
mixed economic system
planned economic system
Adam Smith believed that people naturally think of their own self-interest, but that we also have the capacity to understand and be concerned about other people.
True
False
Adam Smith believed in free markets and free trade where the government stayed out of the economy as much as possible.
True
False
Adam Smith started the idea that the best way to measure a nation’s wealth is its factors of production (land, labor, capital).
True
False
Adam Smith’s idea about the advantages of a division of labor is based on having workers specialize in a certain aspect of production.
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
Who is the "Father of Economics and Modern Capitalism"?
Adam Smith
Karl Marx
John Keynes
Alfred Marshall
The policy/philosophy supporting capitalism is?
Classic Communism
Laissez-faire
Idealistic Socialism
None of the above
Wealth of Nations introduced this theory that we should each do what we are best at and trade for other things we want and need
The Invisible Hand
Laissez Faire
Division of Labor
Equilibrium
Accordiong to Adam Smith the role of government in the economy was to:
freeze wages and prices
provide income for the people
ensure that the markets ran smoothly
provide low price utilities for consumers
According to Smith countries that engage in trade:
never go to war
have higher standards of living
have fewer poor people
will never fail
What did Adam Smith theorize about the relationship between specialization and trade?
Specialization leads to self-sufficiency, which leads to poverty
Specialization leads to self-sufficiency, which leads to wealth
Specialization leads to trade, which leads to poverty
Specialization leads to trade, which leads to wealth
What is the regulator in a free market economy?
competition
self interest
hatred
government
The economic system of the Age of Exploration that favored heavy government regulation, little freedom for individual people, and the use of colonies to benefit European nations is known as ...
Capitalism
Laissez-Faire
Mercantilism
Socialism
Adam Smith describes the benefits to all through our selfish or self-interested actions. He calls it
Laissez Faire
the invisible hand
market efficiency
self-determination
