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Use the dictionary, the acronym finder, and the word origins dictionary (links above) as needed. A new quiz is available each Monday through Thursday. This is the quiz for February 25.
Adam Smith (died 1790) was the author of The Wealth of Nations, which is the first modern work of economics. He is widely cited as the father of modern economics.
The Wealth of Nations is a clearly written account of political economy at the dawn of the Industrial Revolution. It is considered to be one of the most influential books ever published. There are three main concepts in this work: division of labor, pursuit of self interest, and freedom of trade.
The Wealth of Nations explains that the free market, while appearing chaotic and unrestrained, is actually guided to produce the right amount and variety of goods by a so-called "invisible hand." He believed that while human motives are often selfishness and greed, the competition in the free market would tend to benefit society as a whole by keeping prices low, while still building in an incentive for a wide variety of goods and services. Nevertheless, he was wary of businessmen and argued against the formation of monopolies.
He believed that a division of labor would effect a great increase in production. One example he used was the making of pins. One worker could probably make only twenty pins per day. However, if ten people divided up the eighteen steps required to make a pin, they could make 48,000 pins in one day.
An often-quoted passage from The Wealth of Nations is:It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner but from their regard to their own interest. We address ourselves not to their humanity but to their self-love and never talk to them of our own necessities but of their advantages.1. Political economy isA. conservation of goods.2. Chaotic means
B. keeping costs low.
C. making politics efficient.
D. the social science that deals with the management of goods.A. unordered.3. The story of the pins is an example of
D. lacking in good sense.A. political economy.4. Smith believed that people look to
B. the value of division of labor.
C. the benevolence of workers.
D. the value of the free market.A. benefiting other people.The information comes from an article in Wikipedia.
B. promoting industry.
C. their self-interest.
D. fitting into the economy.
Write down your answers and then see Answer Key below.
Answer Key: 1-D..........2-A..........3-B..........4-C
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