Question

Adam Smith believed that if people were free to pursue their own interests, then, ________________.

• A. greed and cheating would prevail in the market
• B. less would be produced than if altruism were our guiding principle
• C. they would generally be encouraged to produce goods and services that other valued highly (relative to their costs)
• D. the public interest would best serve, but the interests of employers would be hurt

Answer 1

Answer: (A)

greed and cheating would prevail in the market

Adam Smith while describing his materialistic definition of wealth economy mentioned that wealth can be generated by putting up any cause in the market for which assumption was taken that people pursue their own needs by being greedy which influence their individual behaviour in the market individual’s behaviour is influenced by their selfish motives.