THE ROAD TO REVOLUTION 1700 1774
THE AMERICAN ENLIGHTENMENT INTELLECTUAL AND SOCIAL REVOLUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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if individuals were free to pursue their own self-interest, then society would benefit.
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if individuals were free to pursue their own self-interest, then they would exploit other people.
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if individuals were forced to buy & sell at fair prices, then society would benefit.
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if governments interfered in their economies, then they could maximize human comfort.
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Detailed explanation-1: -Mercantilism, the Physiocrats, and Adam Smith That group advocated laissez-faire, arguing that business should follow freely the natural laws of economics without government interference. They regarded agriculture as the sole productive economic activity and encouraged the improvement of cultivation.
Detailed explanation-2: -Smith’s 3 natural laws of economics: Law of self-interest – people work for their own good. Law of competition – competition forces people to make a better product for lower price. Law of supply and demand – enough goods would be produced at the lowest price to meet the demand in a market economy.
Detailed explanation-3: -Smith’s best-known ideas formed the basis of economic theory, including the invisible hand theory (the idea that free-markets coordinate themselves), the division of labor (the idea that people should specialize in specific tasks), and the measurement of economic activity (Gross Domestic Product).
Detailed explanation-4: -Adam Smith “Economics is the science of wealth” This definition was given by Adam Smith. He is also known as the ‘father of economics. According to this definition, economics is a science of the study of wealth only. It deals with production, distribution, and consumption.