GK
WORLD HISTORY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Adam Smith believed global trade and competition was good because ____
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it kept prices low and increased the quality of goods
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it kept prices high and increased the quality of goods
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it kept prices high and decreased the quality of goods
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it kept prices low and decreased the quality of goods
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Explanation:
Detailed explanation-1: -Smith believed that economic development was best fostered in an environment of free competition that operated in accordance with universal “natural laws.” Because Smith’s was the most systematic and comprehensive study of economics up until that time, his economic thinking became the basis for classical economics.
Detailed explanation-2: -Smith argued that the free-market system along with free trade would produce true national wealth, benefiting all social classes, not just the privileged few. In a major section of The Wealth of Nations, Smith attacked mercantilist trade practices.
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