Which is NOT true about Adam Smith?
A) He was a leading advocate of free trade.
B) He developed the concept of absolute advantage.
C) He maintained that labor costs represent the major determinant of production cost.
D) He stated that a favorable trade balance is possible only in the short run, as over time it would automatically be eliminated.

Question

Quizplus · Accepted Answer

Adam Smith did not state that a favorable trade balance is possible only in the short run. In fact, he argued that a country can achieve a favorable balance of trade in the long run through specialization and free trade.

Which Is NOT True About Adam Smith