An important insight by Adam Smith,which was more fully developed over the next century,is that in a free market the resources available to a nation are organized so as to produce the goods and services that people want with the least possible amount of resources.This concept is known in economics as
A)productivity.
B)division of labour.
C)specialization.
D)benevolence.
E)efficiency.

Question

Quizplus · Accepted Answer

The concept described in the passage, that in a free market resources are organized to produce goods and services with the least possible amount of resources, is known as efficiency in economics. Choice A, productivity, could be related but does not fully capture the idea of organizing resources to minimize waste. Choice B, division of labor, and choice C, specialization, are related but do not specifically address the idea of efficiency in resource allocation. Choice D, benevolence, is not relevant to the concept described in the passage.

An Important Insight by Adam Smith,which Was More Fully Developed