HISTORY
THE INDUSTRIAL REVOLUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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According to Adam Smith, what allows the “invisible hand” to create wealth?
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Government is laissez-faire, allowing businesses to grow.
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Government seizes means of production from owners.
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Government subsidizes (gives money) to corporations.
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The ruler collectivizes industry.
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Explanation:
Detailed explanation-1: -Definition: The unobservable market force that helps the demand and supply of goods in a free market to reach equilibrium automatically is the invisible hand. Description: The phrase invisible hand was introduced by Adam Smith in his book ‘The Wealth of Nations’.
Detailed explanation-2: -The Wealth of Nations carries the important message of laissez faire, which means that the government should intervene as little as possible in economic affairs and leave the market to its own devices.
There is 1 question to complete.