Which of the following was a key belief of Adam Smith?
a. he felt that human goodness would provide adequate goods and services to everyone.
b. he stressed that limited exchange and command economies would prevent the exploitation of the poor.
c. he believed that individuals pursuing their own interests would direct economic activity in the most advantageous way.
d. he lectured about the importance of gold and silver in providing a stable monetary system.
C
You might also like to view...
A payment for a resource above the opportunity cost of the resource is
A) economic rent. B) social rent. C) nominal rent. D) real rent.
External costs and external benefits are collectively referred to as:
A. social externalities. B. network externalities. C. externalities. D. social welfare.
Related to the Economics in Practice on page 292: The smart phone industry is best characterized as
A. an oligopoly. B. a monopoly. C. monopolistically competitive. D. purely competitive.
Based on the Laffer Curve, a cut in the tax rate from 100 percent to a rate lower than the maximum-revenue rate will:
A. Decrease real GDP B. Increase tax revenues C. Decrease tax revenues D. Have no effect on tax revenues