The idea that only the government can organize economic activity in a way that promotes economic well-being for a country as a whole
A)is a basic principle regarding individual decisionmaking.
B)amounts to a denial of one of the basic principles regarding interactions among people.
C)supports the idea that the "invisible hand" should guide economic activity.
D)was promoted by the economist Adam Smith in a well-known 1776 book.

Question

Quizplus · Accepted Answer

The idea that only the government can organize economic activity in a way that promotes economic well-being for a country as a whole denies the basic principle of market interactions, which is that individuals and firms make decisions based on their own self-interest, leading to an efficient allocation of resources. This idea is known as economic interventionism and is contrary to the principles of laissez-faire economics promoted by Adam Smith in his book "The Wealth of Nations" in 1776.

The Idea That Only the Government Can Organize Economic Activity