Adam Smith believed that countries would prosper if businesspeople were free to start and run their own businesses. Businesspeople would make a profit by providing the goods, services, and ideas that others in the economy wanted, and they would hire others to help increase those profits, leading to social and economics benefits for many. This idea was called the
A) kinked demand theory.
B) invisible hand.
C) spending multiplier.
D) demand accelerator.

Question

Quizplus · Accepted Answer

Adam Smith believed that self-interest would lead profit-seeking entrepreneurs to produce goods and services wanted by consumers, and to hire others to grow their businesses. This would prove to be social and economic gain for the entrepreneur and for others.

Adam Smith Believed That Countries Would Prosper If Businesspeople Were