The Wealth of Nations

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Questions and Answers

According to Adam Smith's 'Wealth of Nations', why does pursuing one's own interest often promote the interest of society?

Because individuals are always guided by the principles of capitalism
Because individuals are motivated by the desire to help others
Because individuals are naturally selfless and altruistic
Because individuals pursuing their own interest leads to innovation and productivity (correct)

What is the core concept of capitalism according to Adam Smith?

Technology
Advancement in technology
Profit (correct)
Independence

What is the significance of independence in promoting one's own interest?

Independence is not necessary for promoting one's own interest
Independence hinders the promotion of one's own interest
Independence is essential for promoting one's own interest (correct)
Independence has no impact on promoting one's own interest

What are positive spillovers according to Adam Smith?

The unintended benefits that come from pursuing one's own interest (B) Signup and view all the answers

What does Adam Smith mean by directing industry in such a manner that its produce may be of the greatest value?

Producing goods and services that are in high demand (A) Signup and view all the answers

What are the different colors used in the text and what do they represent?

Green represents discussions, yellow represents readings, blue represents key ideas, and orange represents supplementary materials. Signup and view all the answers