In reference to voluntary trade,what was Adam Smith the first to recognize?
A)It does not happen very often.
B)It may or may not benefit one or both of the parties to the trade.
C)It benefits one party to the trade but only at the expense of the other.
D)It benefits both parties to the trade.

Question

Quizplus · Accepted Answer

Adam Smith recognized that voluntary trade benefits both parties involved. He argued that individuals pursuing their own self-interest in trade would lead to overall economic prosperity and growth. This idea is known as the principle of mutual advantage or the invisible hand. Smith believed that voluntary trade allowed for specialization and innovation, which would ultimately benefit society as a whole.

In Reference to Voluntary Trade,what Was Adam Smith the First