Adam Smith believed that the goal of economic activity is to amass wealth in the form of gold, and that this could best be accomplished through government carefully using tariffs and quotas to fashion favorable terms of trade with its trading partners.

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This statement is false. Adam Smith is known as the father of modern economics and his views were more centered around the concept of free market capitalism and the role of individual self-interest in driving economic growth. He believed that the market should be allowed to operate freely without government intervention or protectionism, and that competition would ultimately lead to the greatest economic benefit for society as a whole.

Adam Smith Believed That the Goal of Economic Activity Is