Which of these statements is true according to Adam Smith’s theories? A. Factory owners would have to share their profits with the working class. B. The “invisible hand” would prevent the exploitation of workers. C. All class differences would eventually fade away. D. A free market would benefit consumers as well as producers.

THIS USER ASKED 👇

Which of these statements is true according to Adam Smith’s theories?

A.
Factory owners would have to share their profits with the working class.
B.
The “invisible hand” would prevent the exploitation of workers.
C.
All class differences would eventually fade away.
D.
A free market would benefit consumers as well as producers.

THIS IS THE BEST ANSWER 👇

D) A free market will benefit consumers as well as producers.

Explanation:

Adam Smith is known as “the father of capitalism.” Smith argues that the best type of economy is an economy in which government participates as little as possible. This idea is called laissez faire economics.

Smith was an advocate of the “invisible hand.” The idea was that competition between businesses will ensure that businesses act in the best interests of citizens. When businesses compete, they must offer the consumer a competitive price for their goods or services. Otherwise, they will go out of business.

That is why Smith believed that the free market would benefit consumers as well as producers.