Which of the following is a belief about economics supported by Adam Smith?(1 point)
Responses
The government should act to protect domestic industries from competition.
The government should act to protect domestic industries from competition.
Individuals should gather wealth for the well-being of all people.
Individuals should gather wealth for the well-being of all people.
The government should have little involvement in the economy.
The government should have little involvement in the economy.
The protection of private property leads to inequality.
The government should have little involvement in the economy.
The belief about economics supported by Adam Smith is that the government should have little involvement in the economy.
The belief about economics supported by Adam Smith is that the government should have little involvement in the economy.
To arrive at this answer, we can consider the writings and ideas of Adam Smith, a prominent figure in the field of economics. Adam Smith is considered the father of modern economics and his views on free markets and limited government intervention have had a significant influence on economic theory.
One of the key ideas put forth by Adam Smith in his book "The Wealth of Nations" is the concept of laissez-faire economics, which advocates for minimal government intervention in the economy. Smith believed that an economy functions most efficiently when individuals are left to pursue their own self-interests and engage in voluntary exchange without government interference.
According to Smith, individuals acting in their own self-interests would lead to competition and innovation, resulting in overall economic growth and the well-being of society as a whole. He argued that free markets, where individuals are free to buy, sell, and produce goods and services, would lead to the most efficient allocation of resources and the highest level of prosperity for all.
So, based on Adam Smith's views, the correct answer is: "The government should have little involvement in the economy."