Which of the following is a belief about economics supported by Adam Smith?(1 point)
Responses
The protection of private property leads to inequality.
The protection of private property leads to inequality.
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 act to protect domestic industries from competition.
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.
To arrive at this answer, you can first understand that Adam Smith is widely considered the father of modern economics and his ideas are a foundation of classical economics. One of his main works, "The Wealth of Nations," emphasizes the importance of free markets and the concept of the invisible hand, which suggests that individuals pursuing their own self-interests in a competitive market will ultimately lead to the well-being and prosperity of society as a whole.
By examining the responses, you can eliminate options that contradict Smith's belief in limited government involvement. The first two options, suggesting that the protection of private property leads to inequality and that individuals should gather wealth for the well-being of all people, can be eliminated because they involve more government intervention or redistribution of wealth.
The third option, which suggests that the government should act to protect domestic industries from competition, can also be eliminated as Smith advocated for free trade and the removal of barriers to competition.
Therefore, the remaining option, "The government should have little involvement in the economy," aligns with Adam Smith's belief and is the correct answer.