Adam Smith's Economics and the Invisible Hand Theory
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Questions and Answers

According to Marshall’s definition of material things, which of the following examples would fall under immaterial things?

  • Skill in operating a thrasher (correct)
  • A book
  • Cultivation of hybrid cotton variety
  • A tractor

What is one of the criticisms of Marshall's definition of economics?

  • Marshall did not consider any distinctions between material and immaterial things
  • Marshall focused solely on immaterial things
  • Marshall only considered material things (correct)
  • Marshall's definition lacked clarity on the concept of welfare

In Robbins' definition of economics, what do 'ends' refer to?

  • Alternative uses of resources
  • Human wants (correct)
  • Limited resources
  • Economic activities

According to Robbins' definition, what is scarcity of a commodity based on?

<p>The demand for the commodity (D)</p> Signup and view all the answers

What aspect of economic science does Robbins focus on in his definition of economics?

<p>Human behavior and scarcity of resources (D)</p> Signup and view all the answers

Critically evaluating Robbins' definition, which aspect of goods does he not distinguish between?

<p>Goods conducive to human welfare and those that are not (B)</p> Signup and view all the answers

According to Adam Smith, what is the 'invisible hand' in economics?

<p>A mechanism that leads individuals to unintentionally promote society's interests (D)</p> Signup and view all the answers

Why did Ruskin and Carlyle criticize economics as a 'dismal science'?

<p>For teaching selfishness rather than ethics (A)</p> Signup and view all the answers

What did Alfred Marshall emphasize in his definition of economics?

<p>The study of mankind's everyday economic activities (B)</p> Signup and view all the answers

How did the definition of economics shift from Adam Smith to Alfred Marshall?

<p>From emphasizing wealth to focusing on human welfare (A)</p> Signup and view all the answers

What major criticism did Adam Smith face regarding his definition of economics?

<p>Defining economics solely in terms of wealth and not human welfare (A)</p> Signup and view all the answers

How did Adam Smith suggest that individual pursuit of self-interest benefits society?

<p>Through the operation of an 'invisible hand' (D)</p> Signup and view all the answers

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