HISTORY
ABSOLUTISM AND REVOLUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Revolution is the only solution to economic problems.
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Five-year plans are necessary in order to industrialize.
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All nations would benefit from an agricultural economy.
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Government should follow a laissez-faire policy.
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Detailed explanation-1: -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-2: -Explain why Adam Smith would support a laissez-faire economic policy. Smith believed that people produced goods because the wanted a profit, not because they were just good guys who wanted to share-that was the core of a market economy that lead to higher wages over time and innovation.
Detailed explanation-3: -What is the connection between Adam Smith and laissez-faire economics? Adam smith advocated laisse-faire economics. He wrote that markets free from government interference benifited all. Such an economy system free from government regulation is called a market economy.