Which of the following statements reflects Adam Smith’s contribution to ideas about liberalism in his book The Wealth of Nations (1776)?

Question

a) Mercantilism is inimical to economic freedom and markets have to be free to function efficiently.
b) Mercantilism can be a useful tool if the government permits occasional trade with other countries for hard-to-get items.
Consider This: Smith wrote about the “natural effort of every individual to better his own condition.” See 6.1: The Liberal Revolution.
c) Liberal ideas can flourish best in an absolute state.
Consider This: Smith wrote about the “natural effort of every individual to better his own condition.” See 6.1: The Liberal Revolution.
d) Liberal ideas in America undermine the economy of the world and Britain was right to suppress its revolt.
Consider This: Smith wrote about the “natural effort of every individual to better his own condition.” See 6.1: The Liberal Revolution.

Answer 1

a) Mercantilism is inimical to economic freedom and markets have to be free to function efficiently.