Quiz for Document 17-3: Adam Smith, The Wealth of Nations (1776)

1. Document Link

   Which of the following did Smith give as a reason why the division of labor increases the quantity of goods produced in a day?

   A.

   Dividing the steps of the production process produces more satisfied workers.

   B.

   Giving laborers different tasks provides them with incentives to work harder.

   C.

   Allocating one or a few tasks to workers creates more jobs and, therefore, more wealth.

   D.

   Assigning workers a limited number of tasks facilitates their adeptness and speed.

   Which of the following did Smith give as a reason why the division of labor increases the quantity of goods produced in a day?

2. Document Link

   Which of the following forces did Smith believe motivated human economic activity?

   A.

   Personal growth

   B.

   High wages

   C.

   Economic gain

   D.

   Religious belief

   Which of the following forces did Smith believe motivated human economic activity?

3. Document Link

   According to Smith, what determines the exchange value of a product?

   A.

   The market

   B.

   Labor

   C.

   Consumer demand

   D.

   Natural prices

   According to Smith, what determines the exchange value of a product?

4. Document Link

   According to Adam Smith, under what conditions did the “natural price” of a commodity more or less equal its “market price”?

   A.

   When supply more or less equaled demand

   B.

   When demand was greater than supply

   C.

   When supply was greater than demand

   D.

   When a commodity was newly introduced to the market

   According to Adam Smith, under what conditions did the “natural price” of a commodity more or less equal its “market price”?