Adam Smith, in his treatise, The Wealth of Nations, argued that
A)mercantilism was the best way to ensure state security.
B)wealth came from the goods and services purchased, not merely the accumulation of precious metals.
C)military expansion abroad was an inevitable product of capitalism.
D)imperialism was a result of the inter-European competition for dominance.
E)governments must heavily regulate the economy to ensure it ran smoothly.

Question

Quizplus · Accepted Answer

Adam Smith argued that the true source of wealth was not the accumulation of precious metals, but rather the production and consumption of goods and services. This is the basic premise of the concept of the "invisible hand" of the market, where individuals pursuing their own self-interest in a free market would ultimately benefit society as a whole. Smith was critical of the mercantilist belief that a country's security and prosperity depended on the accumulation of precious metals through exports and imports control. He also did not suggest that capitalism would inevitably lead to military expansion or imperialism, but rather that the division of labor and specialization would increase productivity and promote economic growth. Finally, he believed in minimal government intervention in the market, rather than heavy regulation.

Adam Smith, in His Treatise, the Wealth of Nations, Argued