Which of the following is a belief about economics supported by Adam Smith? (1 point)
O The government should have little involvement in the economy.
• The protection of private property leads to inequality.
• Individuals should gather wealth for the well-being of all people.
• The government should act to protect domestic industries from competition.
The belief about economics supported by Adam Smith is that the government should have little involvement in the economy.
To find the answer to this question, we can analyze each option and determine which one aligns with Adam Smith's beliefs.
- The option "The government should have little involvement in the economy" directly aligns with Adam Smith's views. He is often considered the father of modern economics and is known for advocating for a free market economy with minimal government intervention. This approach allows for competition, supply, and demand to determine prices and allocations in the economy.
- The option "The protection of private property leads to inequality" is not supported by Adam Smith. He acknowledged that unequal outcomes may result from a free market system, but he argued that the pursuit of self-interest and accumulation of wealth by individuals ultimately benefits society as a whole.
- The option "Individuals should gather wealth for the well-being of all people" does not accurately represent Adam Smith's beliefs. While individuals pursuing their own self-interest can lead to the overall well-being of society, Smith did not argue that the sole purpose of individuals gathering wealth is for the well-being of all people. He believed that the pursuit of self-interest, within the bounds of moral and legal principles, indirectly benefits society as a whole.
- The option "The government should act to protect domestic industries from competition" is not supported by Adam Smith. He advocated for free trade and opposed protectionist measures. Smith believed that a nation's economic well-being is best achieved by allowing domestic industries to compete in a free market, without government interference.
Based on the analysis, the correct belief about economics supported by Adam Smith is "The government should have little involvement in the economy."