Much of the writings of Adam Smith are in close agreement with

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The first fundamental theorem of welfare economics states that any competitive equilibrium leads to a Pareto efficient allocation of resources. Smith's work on the invisible hand and the benefits of division of labor aligns with this theorem, making B the best choice. Smith did not advocate for trade restrictions, did not explicitly discuss the second theorem of welfare economics or the production function and the PPF. While Smith did believe in the power of the market to allocate resources efficiently, he did not provide a formal analysis of where competitive equilibrium is.

Much of the Writings of Adam Smith Are in Close