Question

Adam Smith believed that government should never intervene in a state's economy, but instead allow _____.
owners of factories to control their workers
innovative ideas to be owned by the government
self interest in a free market to thrive
workers to unite against the owners

Answer 1

Adam Smith was an economist who believed that the government should practice Laissez Faire, or the 'invisible hand.' He also believed that the government should never intervene in a state's economy but should allow self interest in a free market to thrive. His beliefs rose to power in Europe during the mid 1700's.

Answer 2

The correct answer is C. Self interest in a free market to thrive

Explanation:

Adam Smith was a philosopher and considered as a pioneer of political economy, Smith wrote the "Wealth of nations" in 1776 which is considered an important work related to the economy. In this work Adam Smith stated individual's actions and efforts guided by self-interests had social benefits, this is called the invisible hand and implies the government should not intervene in the state economy and both the consumer and the producer will benefit if they are free to follow their interests and thus the community and economy will benefit more than if the government intervenes in the economy excessively, thus, Adam Smith considered the wealth of nations was guided through a successful self-interest competition. Because of this Smith supported the idea that market would thrive is individuals were allowed to follow their economic interests.