THE ROAD TO REVOLUTION 1700 1774
THE AMERICAN ENLIGHTENMENT INTELLECTUAL AND SOCIAL REVOLUTION
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
the free market should regulate business activity.
|
|
|
freely elected governments should make economic decisions.
|
|
|
government power should be divided into three branches.
|
|
|
the state should regulate foreign trade to insure national wealth.
|
Detailed explanation-1: -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.
Detailed explanation-2: -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-3: -Smith believed that government’s proper roles in society should be limited, but well defined: government should provide national defense, the administration of justice, and public goods.
Detailed explanation-4: -Competition is the regulator of economic activity. Together they form what Adam Smith called the invisible hand, which guides resources to their most valued use.