20
QuizMultiple Choice

Globalization — Cumulative exam

Question 20 • GA-GSE Personal Finance and Economics

Adam Smith believed the government’s role in laissez-faire capitalism was

Answer
A
to distribute wealth equally.
B
to set prices and wages.
C
to control the economy.
D
to leave the economy alone.

Explanation

Laissez-faire means “let do” or allow people and businesses to make economic decisions with little government interference. Adam Smith therefore believed the government should leave the economy alone, rather than set prices and wages or control production.

AI-written and checked against the verified answer.

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