Question

Adam Smith wrote in The Wealth of Nations, Book II, Chapter 2, In general, if any branch of trade, or any division of labour, be advantageous to the public, the freer and more general the competition, it will always be the more so.
Given this statement, Adam Smith would be most likely to oppose

encouraging trade competition
getting rid of trade tariffs
using taxes to help failing banks
removing farm subsidies

Answer 1

Answer: using taxes to help failing banks

Explanation:

Adam Smith believed that competition was good for the economy because it would lead to only the most efficient companies surviving as they outlast those who were not efficient and had to close up because they couldn't compete with the efficient ones.

Failing banks would fall under companies that were not efficient enough and so to Adam Smith, should not survive. Aiding these banks therefore so that they would survive, would be opposed by Adam Smith because it would mean that inefficiency was being rewarded and resources of the country were not be distributed efficiently.