Question

Adam Smith maintained that national well-being depends on the ability to consume, so __________. a. government should closely monitor imports and exports in order to maintain a proper balance imports are valuable because national consumption can increase. b. government should encourage domestic production so domestic consumption can increase without increasing imports. c. a country should produce all that its citizens can consume and export everything that its citizens cannot consume.

Answer 1

Answer:

a. government should closely monitor imports and exports in order to maintain a proper balance imports are valuable because national consumption can increase.

Explanation:

Adam Smith maintained that national well-being depends on the ability to consume, so government should closely monitor imports and exports in order to maintain a proper balance imports are valuable because national consumption can increase. Adams smith in his publication titled the wealth of nations asserted that nations should monitor import which is valuable because national consumption of a good may increase, he also asserted that national well-being depends on an nations consumption level, that is the higher the level of consumption of a nation, the higher the well-being of its citizen and  the best way to make up for deficit in demand is by importation.