According to Adam Smith, what is the best way to increase the wealth of a nation?

Question

(1 point)
• implement protective tariffs
• reduce competition
• allow trade without restrictions
• practice a policy of mercantilism

Answer 1

According to Adam Smith, the best way to increase the wealth of a nation is to allow trade without restrictions. Free trade, in Smith's view, leads to greater specialization, efficiency, and overall economic growth.