Which of the following is a belief about economics
supported by Adam Smith? (1 point)
Individuals should gather wealth for the well-being
of all people.
The protection of private property leads to
inequality.
The government should act to protect domestic
industries from competition.
The government should have little involvement in
the economy.
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:
"The government should have little involvement in the economy."
To determine the answer, we can examine Adam Smith's ideas and principles as outlined in his seminal work, "The Wealth of Nations." Adam Smith is considered the father of modern economics and is known for promoting free market capitalism and the concept of laissez-faire.
According to Smith, individuals acting in their own self-interest, pursuing their own economic gain, would result in an overall benefit for society as a whole. He argued that the invisible hand of the market, driven by the forces of supply and demand, would lead to the most efficient allocation of resources and the best outcomes for the society. Smith believed that government interference in the economy, such as excessive regulations or protective tariffs, would hinder economic growth and limit individual freedom.
Based on these principles, Adam Smith advocated for limited government involvement in economic affairs. Therefore, the statement "The government should have little involvement in the economy" aligns with his beliefs.