ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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government-run railroad in Africa
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medieval manor in Europe
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commune in Communist China
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privately owned factory in France
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Detailed explanation-1: -Smith introduced the concept that free trade would benefit individuals and society as a whole. He believed that governments should not impose policies that interfered with free trade, domestically and abroad.
Detailed explanation-2: -We have seen that Adam Smith would agree with at least two principles of laissez-faire economics: (1) he believed that free, self-interested economic transactions promote the well-being of society; and (2) he was highly suspicious of government’s attempt to regulate the economy and competition.
Detailed explanation-3: -The doctrine of laissez-faire is usually associated with the economists known as Physiocrats, who flourished in France from about 1756 to 1778.
Detailed explanation-4: -Adam Smith is regarded as the father of modern economics thanks to his development of a multitude of foundational economic theories and concepts on which the discipline was built. Some of his most influential contributions include division of labor, gross domestic product (GDP), and the theory of the invisible hand.