50+ MCQs on Adam Smith with Answers for UGC NET / SET Prepration
1. In which century did Adam Smith live?
a. 16th century
b. 17th century
c. 18th century
d. 19th century
2. Adam Smith is often referred to as the father of:
a. Communism
b. Capitalism
c. Socialism
d. Feudalism
3. Smith’s most famous work is:
a. “The Wealth of Nations”
b. “The Communist Manifesto”
c. “Das Kapital”
d. “The Prince”
4. According to Smith, what is the primary driver of economic prosperity?
a. Government intervention
b. Competition and self-interest
c. Social equality
d. Centralized planning
5. Smith’s concept of the “invisible hand” refers to:
a. Government regulation
b. Market forces guiding economic self-interest to benefit society
c. Collective ownership of the means of production
d. Religious principles in economic decision-making
6. The idea of “laissez-faire” in economics is closely associated with:
a. Karl Marx
b. John Maynard Keynes
c. Adam Smith
d. Friedrich Hayek
7. Smith argued that individuals pursuing their self-interest in a competitive market would unintentionally contribute to:
a. Economic inefficiency
b. Social inequality
c. Economic growth and the well-being of society
d. Government control
8. According to Smith, what is the role of government in the economy?
a. To control and regulate all economic activities
b. To plan and coordinate production
c. To protect property rights and maintain the rule of law
d. To redistribute wealth
9. In “The Wealth of Nations,” Smith identified three functions of government. Which of the following is NOT one of them?
a. Defense and justice
b. Education
c. Public works and infrastructure
d. Monetary policy
10. Smith’s theory of value is based on the concept of:
a. Labor theory of value
b. Utility
c. Gold standard
d. Barter
11. According to Smith, what is the source of a nation’s wealth?
a. Accumulation of gold and precious metals
b. Division of labor and productive work
c. Government subsidies
d. Social welfare programs
Also Read-
50+ MCQs on Giambattista Vico with Answers for UGC NET / SET Prepration
50+ MCQs on John Locke with Answers for UGC NET / SET Prepration
50+ MCQs on John Keats with Answers for UGC NET / SET Prepration
12. Smith’s concept of the “division of labor” is explained in which of his works?
a. “The Wealth of Nations”
b. “The Theory of Moral Sentiments”
c. “An Inquiry into the Nature and Causes of the Wealth of Nations”
d. “The Invisible Hand”
13. Smith’s idea of the “division of labor” suggests that it leads to:
a. Economic inefficiency
b. Decreased productivity
c. Increased productivity and specialization
d. Social inequality
14. Smith argued that the pursuit of self-interest in a competitive market would lead to the best outcome for society, known as:
a. Socialism
b. Mercantilism
c. The invisible hand
d. Laissez-faire
15. Smith’s view on government intervention in the economy is best described as:
a. Advocating for extensive government control
b. Supportive of limited government intervention
c. Promoting communism
d. Indifferent to the role of government
16. According to Smith, what is the role of prices in a market economy?
a. To reflect the cost of production
b. To convey information about scarcity and demand
c. To be fixed by the government
d. To regulate supply and demand directly
17. Smith’s “Theory of Moral Sentiments” focuses on:
a. Economic principles
b. Ethical and moral behavior
c. Political philosophy
d. Scientific methodology
18. Smith’s idea of “self-interest” is grounded in the belief that individuals act in ways that:
a. Maximize the welfare of society
b. Promote social equality
c. Benefit themselves and unintentionally benefit society
d. Align with religious principles
19. Smith’s work “The Theory of Moral Sentiments” explores:
a. Economic principles
b. Ethical and moral behavior
c. Political philosophy
d. Scientific methodology
20. According to Smith, what is the role of sympathy in moral behavior?
a. Sympathy should be suppressed in economic transactions
b. Sympathy plays no role in moral behavior
c. Sympathy is the basis of moral sentiments and social bonds
d. Sympathy is irrelevant to economic decision-making
21. Smith’s advocacy for free trade is evident in his criticism of:
a. Protectionist policies
b. Division of labor
c. Laissez-faire
d. Mercantilism
22. Smith’s idea of the “mercantile system” criticized:
a. Government intervention in the economy
b. The gold standard
c. The invisible hand
d. The division of labor
23. According to Smith, what is the role of entrepreneurs in the economy?
a. To limit competition
b. To innovate and respond to market demands
c. To fix prices
d. To rely on government subsidies
24. Smith’s concept of “natural price” refers to:
a. The market price determined by supply and demand
b. The price fixed by the government
c. The cost of production
d. The price regulated by a monopoly
25. Smith’s critique of mercantilism included opposition to:
a. Colonization
b. Protectionist trade policies
c. Gold and silver accumulation
d. Free markets
26. According to Smith, what is the role of education in a society?
a. To promote government propaganda
b. To instill religious values
c. To foster critical thinking and skill development
d. To perpetuate social inequality
27. Smith’s work “The Wealth of Nations” was published in:
a. 1692
b. 1776
c. 1804
d. 1850
28. Smith’s idea of “value in exchange” is associated with:
a. Utility
b. The labor theory of value
c. The gold standard
d. Barter
29. According to Smith, what is the relationship between self-interest and the common good?
a. Self-interest and the common good are incompatible
b. Self-interest naturally leads to the common good through the invisible hand
c. The common good should be prioritized over self-interest
d. Self-interest should be eradicated for the greater good
30. Smith’s critique of the mercantile system emphasized the importance of:
a. Government regulation
b. International trade and competition
c. Protectionist policies
d. The gold standard
31. According to Smith, what is the role of government in protecting property rights?
a. Enforcing redistribution of wealth
b. Facilitating monopolies
c. Protecting property rights and maintaining the rule of law
d. Regulating prices
32. Smith’s idea of the “invisible hand” suggests that:
a. Government should directly control economic outcomes
b. Market forces guide individuals’ self-interest to unintentionally benefit society
c. Socialism is the ideal economic system
d. The government should plan and coordinate production
33. Smith’s criticism of government intervention in the economy is evident in his opposition to:
a. Education
b. Defense and justice
c. Mercantilism
d. Public works and infrastructure
34. According to Smith, what is the role of self-interest in economic transactions?
a. It leads to economic inefficiency
b. It is irrelevant in economic decision-making
c. It motivates individuals to act in ways that unintentionally benefit society
d. It leads to social equality
35. Smith’s concept of the “invisible hand” is most closely associated with which economic outcome?
a. Government control
b. Economic inefficiency
c. Social inequality
d. Spontaneous order and well-being
36. Smith’s work “The Wealth of Nations” is considered a foundational text in the field of:
a. Political theory
b. Sociology
c. Economics
d. Psychology
37. According to Smith, what is the role of competition in the market?
a. To restrict production
b. To ensure a monopoly
c. To promote efficiency and innovation
d. To fix prices
38. Smith’s idea of “absolute advantage” in international trade suggests that:
a. Countries should focus on producing goods in which they have a relative advantage
b. Countries should be self-sufficient and avoid trade
c. Countries should only trade with their colonies
d. Countries should produce everything they need do
39. According to Smith, what is the role of the state in education?
a. To enforce religious conformitymestically
b. To promote government propaganda
c. To facilitate the pursuit of knowledge and skills
d. To eliminate education as a state function
40. Smith’s argument against mercantilism emphasized the importance of:
a. Protectionist trade policies
b. Accumulation of gold and silver
c. Government subsidies for industries
d. Free markets and international trade
41. According to Smith, what is the role of government in defense and justice?
a. To minimize defense and justice functions
b. To prioritize offense over defense
c. To maintain a strong defense and justice system
d. To avoid any involvement in defense and justice matters
42. Smith’s view on the role of the government in public works and infrastructure is that:
a. Government should be involved in all aspects of public works
b. Government should avoid any involvement in public works
c. Government should only be involved in critical infrastructure projects
d. Public works and infrastructure are irrelevant to economic development
43. According to Smith, what is the role of the government in monetary policy?
a. To control all aspects of monetary policy
b. To implement the gold standard
c. To ensure a stable currency and prevent inflation
d. To manipulate currency values for economic advantage
44. Smith’s idea of the “invisible hand” suggests that individuals, by pursuing their own self-interest, unintentionally contribute to:
a. Economic inefficiency
b. Social inequality
c. Economic growth and the well-being of society
d. Government control
45. According to Smith, what is the role of government in protecting property rights?
a. Enforcing redistribution of wealth
b. Facilitating monopolies
c. Protecting property rights and maintaining the rule of law
d. Regulating prices
46. Smith’s concept of “natural price” refers to:
a. The market price determined by supply and demand
b. The price fixed by the government
c. The cost of production
d. The price regulated by a monopoly
47. Smith’s idea of “absolute advantage” in international trade suggests that:
a. Countries should focus on producing goods in which they have a relative advantage
b. Countries should be self-sufficient and avoid trade
c. Countries should only trade with their colonies
d. Countries should produce everything they need domestically
48. According to Smith, what is the role of the state in education?
a. To enforce religious conformity
b. To promote government propaganda
c. To facilitate the pursuit of knowledge and skills
d. To eliminate education as a state function
49. Smith’s argument against mercantilism emphasized the importance of:
a. Protectionist trade policies
b. Accumulation of gold and silver
c. Government subsidies for industries
d. Free markets and international trade
50. According to Smith, what is the role of government in defense and justice?
a. To minimize defense and justice functions
b. To prioritize offense over defense
c. To maintain a strong defense and justice system
d. To avoid any involvement in defense and justice matters
Answer
1. c. 18th century
2. b. Capitalism
3. a. “The Wealth of Nations”
4. b. Competition and self-interest
5. b. Market forces guiding economic self-interest to benefit society
6. c. Adam Smith
7. c. Economic growth and the well-being of society
8. c. Protect property rights and maintain the rule of law
9. b. Education
10. b. Utility
11. b. Division of labor and productive work
12. c. “An Inquiry into the Nature and Causes of the Wealth of Nations”
13. c. Increased productivity and specialization
14. c. The invisible hand
15. b. Supportive of limited government intervention
16. b. To convey information about scarcity and demand
17. b. Ethical and moral behavior
18. c. Benefit themselves and unintentionally benefit society
19. b. Ethical and moral behavior
20. c. Sympathy is the basis of moral sentiments and social bonds
21. a. Protectionist policies
22. a. Government intervention in the economy
23. b. To innovate and respond to market demands
24. c. The cost of production
25. b. Protectionist trade policies
26. c. To foster critical thinking and skill development
27. b. 1776
28. a. Utility
29. b. Self-interest naturally leads to the common good through the invisible hand
30. d. The gold standard
31. c. Protecting property rights and maintaining the rule of law
32. b. Market forces guide individuals’ self-interest to unintentionally benefit society
33. c. Mercantilism
34. c. It motivates individuals to act in ways that unintentionally benefit society
35. d. Spontaneous order and well-being
36. c. Economics
37. c. To promote efficiency and innovation
38. a. Countries should focus on producing goods in which they have a relative advantage
39. c. To facilitate the pursuit of knowledge and skills
40. d. Free markets and international trade
41. c. To maintain a strong defense and justice system
42. c. Government should only be involved in critical infrastructure projects
43. c. To ensure a stable currency and prevent inflation
44. c. Economic growth and the well-being of society
45. c. Protecting property rights and maintaining the rule of law
46. c. The cost of production
47. a. Countries should focus on producing goods in which they have a relative advantage
48. c. To facilitate the pursuit of knowledge and skills
49. d. Free markets and international trade
50. c. To maintain a strong defense and justice system
