Statement I.Adam Smith believed the federal government should play a larger role in the economy.
Statement II.Adam Smith said that a person pursuing his own interest "frequently promotes that of society more effectually than when he really intends to promote it."

Question

Quizplus · Accepted Answer

Adam Smith was a champion of free market capitalism and believed in limited government intervention in the economy. Therefore, statement I is false. However, statement II is true and is a central idea in Smith's work "The Wealth of Nations", where he argues that individuals pursuing their own self-interest in a competitive market will ultimately lead to greater overall well-being and economic growth for society as a whole.