Question

Which of the following entities would most likely agree with Adam Smith's statement?

Consumer protection agencies who are demanding more government oversight

Labor union leaders who are advocating taxes on imports

Public utility company that manages regional power supplies

Stockholders for a pharmaceuticals company that has a new cancer drug

Answer 1

Answer: Stockholders for a pharmaceuticals company that has a new cancer drug

Step-by-step explanation:

Adam Smith was an advocate of the free market. In his view, the free market would provide increased wealth and thus greater welfare for societies. In this case, the shareholders of a pharmaceutical company that have a new cancer drug would agree with Adam Smith's statement, since open market companies represent market freedom, that is, competition in the market and, consequently, propitiate the increase of social welfare.

Answer 2

D. Stockholders for a pharmaceuticals company that has a new cancer drug