In the Wealth of Nations,Adam Smith argues that:
A) self-interest leads to the efficient allocation of resources.
B) benevolence leads to the efficient allocation of resources.
C) profits are maximized where marginal revenue equals net marginal benefits.
D) None of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

Adam Smith believed that individuals pursuing their own self-interest would lead to the efficient allocation of resources through markets. He argued that when each person acts in their own self-interest, they are naturally led by an invisible hand to promote the welfare of society as a whole. Therefore, choice A is the correct answer.

In the Wealth of Nations,Adam Smith Argues That