Question

Which of the following statements best describes the economic theories of Adam Smith?

a. Government ought to answer most economic questions for citizens and corporations.
b. Private individuals and businesses ought to answer most economic questions for themselves.
c. Public and private entities ought to share the responsibility for answering economic questions.
d. The church and similar public institutions ought to answer most economic questions.

Answer 1

B. Private individuals and businesses ought to answer most economic questions for themselves.

Answer 2

Answer:

B) Private individuals and businesses ought to answer most economic questions for themselves.

Explanation:

Adam Smith is one of the thinkers who first introduced the idea of Liberalism. Economic liberalism advocates non-state intervention in the economy, free competition, free exchange, and private property. For this theory, the individual is the economic agent and, for this reason, the state should not interfere in economic activities with many rules. If there is any misfit, the market itself will naturally correct it, ie it is self-regulating.