Question

Their economic theory is a theory of the ways in which households and cities can properly use the means at their disposal for:

Option 1: Wealth accumulation
Option 2: Social justice
Option 3: Military dominance
Option 4: Cultural preservation

Answer 1

Adam Smith's economic theory indicates that free market capitalism, through division and specialization of labor, aims for efficient wealth accumulation. Societies, however, must balance this with the need for social justice, military dominance, and cultural preservation, all of which require different uses of resources.

Step-by-step explanation:

The question involves analyzing economic theory surrounding how households and cities can use their resources for various goals. According to Adam Smith and principles of classical liberal theory, a free market economy allows for wealth accumulation through the efficient use of resources facilitated by division and specialization of labor. This capitalist view suggests that by focusing on economic growth and consumerism, both producers and consumers benefit from a variety of choices, driving down prices and improving efficiency.

However, societies must also consider factors such as social justice, military dominance, and cultural preservation, each having different ideological backings and implications on how resources are allocated. While some theories, like conflict theory, address the disparities in power and the access to resources and wealth, other anthropological perspectives consider the more human-centered economic issues, such as the impact of social and cultural features on economic production and consumption.