Reference no: EM13804882

1) According to Smith, social harmony comes from economic exchanges in which people act

A. For the good of the nation-state

B. In the interest of their neighbour

C. In the interest of the poorest

D. In their own self-interest

2) Adam Smith advocated for public education in order to address the social problems created by the increased division of labor.

True

False

3) Which one of the following is a role for government that Smith saw as essential?

A. The government needed to repeatedly cut taxes for the wealthy as the economy developed

B. The government needed to abolish all forms of aid to the poor

C. The government needed to maintain a standing army

D. The government needed to centrally plan major industries

4) According to Smith, the extent to which the division of labor could increase depended upon the extent of the market.

True

False

5) The division of labor was a crucial component in the source of the wealth of nations for Adam Smith.

True

False

6) In the Wealth of Nations, decisions as to how much of a commodity to be produced are ultimately made by:

A. traders

B. the government

C. businessmen

D. the "invisible hand" of the market

7) The division of labor tends to be greatest in less economically developed countries.

True

False

8) Smith claims that the workers themselves can invent labor-saving machinery.

True

False

9) According to Smith, the cooperation that is necessary to raise living standards best driven by

A. self-interest

B. benevolence

C. human wisdom and foresight (i.e. planning)

10) According to Smith, the need for national defence grew more urgent as economic growth occurred.

True

False

11) Why did Smith magnify the negative effects of the division of labor?

A. Smith wanted to encourage parents to send their children to private schools rather than send them to work at a young age, thereby ensuring that the level of education in Great Britain as a whole would improve.

B. Smith wanted to encourage universal public schooling, largely at government expense, so that even those in the lower ranks of society could acquire the essential skills of reading, writing, and arithmetic.

12) Based on your understanding of Smith's arguments, explain why the common man of the interior of North America today is far richer in material standards than the common man located in the interior of Africa today.

A. The common man of interior North America has clearly benefited from the human wisdom and foresight of careful government planning.

B. The common man of interior North America lives in a region where people must necessarily be happier.

C. The common man of interior North America lives in a region that is more populous and better connected to neighboring markets hence a higher level of division of labor present than in interior Africa.

13) According to Smith, the division of labor in agriculture tends to be __________ than the division of labor in manufacturing. (Smith, of course, is referring to his own time here.)

A. Less

B. Greater