Adam Smith's Wealth of Nations emphasized
A)that Scotland produced several key technological innovations.
B)how free markets produce socially efficient outcomes.
C)mercantilism.
D)that the government should intervene to smooth business cycles.
E)the existence of externalities.

Question

Quizplus · Accepted Answer

Adam Smith's Wealth of Nations emphasized how free markets produce socially efficient outcomes. He argued that by pursuing their own self-interest, individuals in a free market economy would naturally produce goods and services that satisfied the wants and needs of consumers at the lowest possible cost. Smith believed that the government's role should be limited to protecting property rights, enforcing contracts, and providing public goods like national defense and infrastructure.

Adam Smith's Wealth of Nations Emphasized