Question

Adam Smith advocated free capitalism with no other moral rules than the maximization of profit:

a. True
b. False

Answer 1

False. Adam Smith advocated for free capitalism but also believed in the concept of the invisible hand, where the free market system guides the supply and demand of goods and services to benefit everyone.

Step-by-step explanation:

False. Adam Smith, known as the Father of Capitalism, did advocate for free capitalism, but he did not believe in a system with no other moral rules than the maximization of profit. Smith argued that self-interested individuals tend to make decisions that benefit themselves but also benefit society as a whole. He believed in the concept of the invisible hand, where the free market system guides the supply and demand of goods and services to benefit everyone.