Question

Adam Smiths economic theory, in which all people are free to pursue their own private interests, is known as what?

Answer 1

It is knowns Lassez-faire capitalism. This theory argues that when there is no meddling from the government on the people's interests, it will encourage them to pursue their own goals and be more competitive to be financially better off than rest of the members of society, which would ultimately cause an automatic balance in the nation's economy. This theory is associated with those Adam Smith's book "Wealth of Nations".