Question

Which is NOT one of Adam Smith’s main points in The Wealth of Nations? A. People naturally gravitate toward work they feel skilled than allowing for the highest quality of goods to be produced B. An “invisible hand” gods the market through the natural laws of supply and demand meaning the government has no place to try to regulate the economy C. People naturally gravitate toward the work they find most profitable D. Country should pass tariff laws in order to protect domestic industries from foreign competition

Answer 1

D. Country should pass tariff laws in order to protect domestic industries from foreign competition.

Adam Smith is known for his reverence on free trade. He believes that an "autopilot mechanism" of the free market will serve all-- both domestic and foreign businessmen and consumers. He does not believe in Mercantilism and concludes that when the government tries to restrict foreign competition, it is actually damaging the consumers by making products (that are better) inaccessible.