Adam Smith's concept of laissez faire alluded to
A)free markets.
B)regulated economic interchange within and between nations.
C)government involvement in market functioning.
D)mercantilism.

Question

Quizplus · Accepted Answer

Adam Smith's concept of laissez faire advocated for free markets, where the government takes a hands-off approach and allows market forces to determine prices, production, and distribution of goods and services. It opposed government intervention in the economic functioning of the nation. Therefore, option A, free markets, is the correct choice. Option B is incorrect because laissez faire does not advocate for regulated economic interchange but promotes free trade. Option C is incorrect because it opposes government involvement. Option D is incorrect because laissez faire was against mercantilism, which supported government regulation of trade and accumulation of wealth through trade surpluses.

Adam Smith's Concept of Laissez Faire Alluded to