Adam Smith and the Wealth of Nations

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According to Adam Smith, how does the market mechanism coordinate the activities of economic actors?

Through government intervention

Through central planning

By individual pursuit of self-interest (correct)

By random chance

What did Karl Marx identify as the key driver of historical change in society?

Government policies

Technological advancements

Division of labor

Class struggle (correct)

Which Industrial Revolution wave was characterized by advancements in computers and partial automation?

Fourth IR

Third IR (correct)

First IR

Second IR

What did Thomas Malthus predict about income levels in relation to population growth?

Income will remain at subsistence level Signup and view all the answers

Which concept did Adam Smith strongly support in relation to economic activity?

Division of labor and specialization Signup and view all the answers

What was Karl Marx's view on the relationship between the working class and the capitalist class?

Exploitation of the working class by the capitalist class Signup and view all the answers

What was one of the implications of 'Malthus's Law'?

Economies are trapped in a low-income cycle. Signup and view all the answers

Why did Malthus suggest that unless there is technological improvement or an increase in resources, the population will tend to stay the same?

To explain the connection between resources and population dynamics. Signup and view all the answers

What is the significance of labour-saving and energy intensive production methods that emerged in the 18th and 19th centuries?

They increased labour productivity and wage rates. Signup and view all the answers

Why is it crucial for private property to be secure for capitalism to be dynamic?

Secure private property encourages innovation and investment. Signup and view all the answers

What role did labour productivity play in escaping the Malthusian trap?

Labour productivity enabled temporary increases in living standards. Signup and view all the answers

How did Malthus view subsistence levels during his time?

As living on the verge of starvation. Signup and view all the answers

Adam Smith and the Wealth of Nations

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Questions and Answers

According to Adam Smith, how does the market mechanism coordinate the activities of economic actors?

What did Karl Marx identify as the key driver of historical change in society?

Which Industrial Revolution wave was characterized by advancements in computers and partial automation?

What did Thomas Malthus predict about income levels in relation to population growth?

Which concept did Adam Smith strongly support in relation to economic activity?

What was Karl Marx's view on the relationship between the working class and the capitalist class?

What was one of the implications of 'Malthus's Law'?

Why did Malthus suggest that unless there is technological improvement or an increase in resources, the population will tend to stay the same?

What is the significance of labour-saving and energy intensive production methods that emerged in the 18th and 19th centuries?

Why is it crucial for private property to be secure for capitalism to be dynamic?

What role did labour productivity play in escaping the Malthusian trap?

How did Malthus view subsistence levels during his time?

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