1. What significant events were occurring in England and North America at the time that The Wealth of Nations was written?
(3 points)
2. What was Adam Smith’s purpose in writing The Wealth of Nations?
(3 points)
3. Why does Smith think that pursuing personal interests is a more effective way to benefit society than trying to pursue the interest of society as a whole?
(3 points)
4. Why does Smith think that the government should stay out of economic affairs?
(4 points)
5. Are there any reasons why Smith’s model of capitalism might not be a successful argument in favor of the free-market system? Explain.
(4 points)
6. Smith points out the possibility of producers contriving to raise prices. Are there other problems with the free-market system that he did not point out?
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