Question

Which of the following statements best describes the economic theories of Adam Smith?

Answer 1

Answer:

B) Private individuals and businesses ought to answer most economic questions for themselves.

Explanation:

Adam Smith is one of the thinkers who first introduced the idea of Liberalism. Economic liberalism advocates non-state intervention in the economy, free competition, free exchange, and private property. For this theory, the individual is the economic agent and, for this reason, the state should not interfere in economic activities with many rules. If there is any misfit, the market itself will naturally correct it, ie it is self-regulating.

Answer 2

B. Private individuals and businesses ought to answer most economic questions for themselves.