For many years, Senator Juliana Higdon has called for more government regulation of business. "After all," the senator said recently, "businesses are out to make a profit, not to create jobs or serve their customers. The government needs to pass more laws to require businesses to take the interests of consumers and workers into account." From these comments, it is clear that Senator Higdon
A) agrees with the ideas of Thomas Malthus.
B) does not accept the "invisible hand" idea brought forth by Adam Smith.
C) is unaware of the fact that most businesses in the United States are owned by the government.
D) does not realize that government regulation is already the main determinant of business decisions in capitalist economies.

Question

Quizplus · Accepted Answer

The concept of the invisible hand, developed by Adam Smith in his famous book, The Nature and Causes of the Wealth of Nations, says that in an effort to earn a profit, entrepreneurs produce goods that satisfy the wants of consumers and create jobs for workers. It is clear from her statements that Senator Higdon does not accept this philosophy.

For Many Years, Senator Juliana Higdon Has Called for More