What three factors that were critical to economic prosperity did Adam Smith observe, and later publish in The Wealth of Nations?
What will be an ideal response?
Smith observed the division of labor, or specialization; he established the link between specialization and exchange, pointing out the inherent nature of humans to further their own self-interest through exchange; he observed that generally, the pursuit of self-interest caused people to behave in ways that were good for society as a whole.
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The short-run aggregate supply curve is a relationship between
A) real GDP and price level. B) capital goods and consumer goods. C) unemployment and real GDP. D) inflation and time.
The cross price elasticity of demand between two goods will be positive if
A) the two goods are complements. B) the two goods are substitutes. C) the two goods are luxuries. D) one of the goods is a luxury and the other is a necessity.