Smith wrote that private ownership of the means of production would ?
Correct answer: C. stimulate economic growth as each individual tried to maximize profits
- A. create abuse
- B. stimulate government control
- C. stimulate economic growth as each individual tried to maximize profits
- D. stifle economic growth as the markets would be flooded with merchandise
Explanation
Smith argued that private ownership gives individuals an incentive to pursue profit, and competition can direct those efforts toward greater production and economic growth. This is the basis of the invisible-hand argument.
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