Adam Smith believed that incentives to seek personal gain would create wealth,but that the government must then step in to make sure that this wealth is equitably distributed.
Level of Learning 3: Application of principles

Question

Quizplus · Accepted Answer

Adam Smith believed in the concept of laissez-faire, which means minimal government intervention in the economy. He argued that self-interest and competition in the marketplace would lead to economic prosperity and the invisible hand of the market would ensure that resources and wealth are distributed efficiently. He did not advocate for government intervention in wealth distribution.

Adam Smith Believed That Incentives to Seek Personal Gain Would