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Directions: Read the passages and choose the best answer to each question.PassageSOCIAL SCIENCE: Adam Smith and the “Invisible Hand" DoctrineIn An Inquiry into the Nature and Causes of theWealth of Nations, Scottish economist Adam Smithasserts the power of the “invisible hand,” the notionthat a society benefits from people acting in their(5) own self-interest, without regard to community service.Wrote Smith, “It is not from the benevolence ofthe butcher, the brewer, or the baker, that we canexpect our dinner, but from their regard to their owninterest.” So, the butcher does not cut meat because the(10) community desires it, but rather because it is a meansto earn money. Smith points out that in the absenceof fraud and deception, a mercantile transaction mustbenefit both parties. The buyer of a steak values thesteak more than his money, while the butcher values(15) the money more than the steak.The “invisible hand” is harshly criticized by par-ties who argue that untempered self-interest is immoraland that charity is the superior vehicle for communityimprovement. Some of these people, though, fail to(20) recognize several important aspects of Smith’s concept.First, he was not declaring that people should adopta pattern of overt self-interest, but rather that peoplealready act in such a way. Second, Smith was notarguing that all self-interest is positive for society;(25) he simply did not agree that it was necessarily bad.Standing as a testament to his benevolence, Smithbequeathed much of his wealth to charity.Additionally, the “invisible hand” has come tostand for the resilience of the market after apparently(30) ruinous circumstances. Smith posited that marketsnaturally recover without intervention on the part ofgovernment or similar regulatory bodies. For example,should a product be in excess production, its price in themarket would fall, providing incentive for the public to(35) purchase it, thus reducing the stock. This kind of reac-tion leads to the “natural price” of a good or service,which, Smith believed, was the production cost plusa reasonable profit. This idea would become central to thedoctrine of the laissez-faire economists several(40) generations later.Adam Smith’s Wealth of Nations was written forthe masses and is generally accepted as the first treatiseon economics. For these reasons, the book is thor-oughly studied; for the theory within, Smith’s magnum-(45) opus remains controversial. It stresses low governmentintervention and personal action as the roots of aprosperous market. As societies balance the question ofwhether and how to manipulate their markets, Smithpresents a valuable warning, saying of man, “he intends(50) only his own gain, and he is in this, as in many othercases, led by an invisible hand to promote an end whichwas no part of his intention.”Q.Based on the passage as a whole, which of the following would most likely approximate Smith’s views on competition in the marketplace?a)Competition is a good thing because it keeps prices for goods and services low for the consumer.b)The government should try to eliminate competition because people make purchases based on self-interest.c)Competition is positive, for it causes profit margins to increase and thereby increases market prices.d)The government should foster competition in order to boost the country’s economy in times of recession.Correct answer is option 'B'. Can you explain this answer? for ACT 2025 is part of ACT preparation. The Question and answers have been prepared according to the ACT exam syllabus. Information about Directions: Read the passages and choose the best answer to each question.PassageSOCIAL SCIENCE: Adam Smith and the “Invisible Hand" DoctrineIn An Inquiry into the Nature and Causes of theWealth of Nations, Scottish economist Adam Smithasserts the power of the “invisible hand,” the notionthat a society benefits from people acting in their(5) own self-interest, without regard to community service.Wrote Smith, “It is not from the benevolence ofthe butcher, the brewer, or the baker, that we canexpect our dinner, but from their regard to their owninterest.” So, the butcher does not cut meat because the(10) community desires it, but rather because it is a meansto earn money. Smith points out that in the absenceof fraud and deception, a mercantile transaction mustbenefit both parties. The buyer of a steak values thesteak more than his money, while the butcher values(15) the money more than the steak.The “invisible hand” is harshly criticized by par-ties who argue that untempered self-interest is immoraland that charity is the superior vehicle for communityimprovement. Some of these people, though, fail to(20) recognize several important aspects of Smith’s concept.First, he was not declaring that people should adopta pattern of overt self-interest, but rather that peoplealready act in such a way. Second, Smith was notarguing that all self-interest is positive for society;(25) he simply did not agree that it was necessarily bad.Standing as a testament to his benevolence, Smithbequeathed much of his wealth to charity.Additionally, the “invisible hand” has come tostand for the resilience of the market after apparently(30) ruinous circumstances. Smith posited that marketsnaturally recover without intervention on the part ofgovernment or similar regulatory bodies. For example,should a product be in excess production, its price in themarket would fall, providing incentive for the public to(35) purchase it, thus reducing the stock. This kind of reac-tion leads to the “natural price” of a good or service,which, Smith believed, was the production cost plusa reasonable profit. This idea would become central to thedoctrine of the laissez-faire economists several(40) generations later.Adam Smith’s Wealth of Nations was written forthe masses and is generally accepted as the first treatiseon economics. For these reasons, the book is thor-oughly studied; for the theory within, Smith’s magnum-(45) opus remains controversial. It stresses low governmentintervention and personal action as the roots of aprosperous market. As societies balance the question ofwhether and how to manipulate their markets, Smithpresents a valuable warning, saying of man, “he intends(50) only his own gain, and he is in this, as in many othercases, led by an invisible hand to promote an end whichwas no part of his intention.”Q.Based on the passage as a whole, which of the following would most likely approximate Smith’s views on competition in the marketplace?a)Competition is a good thing because it keeps prices for goods and services low for the consumer.b)The government should try to eliminate competition because people make purchases based on self-interest.c)Competition is positive, for it causes profit margins to increase and thereby increases market prices.d)The government should foster competition in order to boost the country’s economy in times of recession.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for ACT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Directions: Read the passages and choose the best answer to each question.PassageSOCIAL SCIENCE: Adam Smith and the “Invisible Hand" DoctrineIn An Inquiry into the Nature and Causes of theWealth of Nations, Scottish economist Adam Smithasserts the power of the “invisible hand,” the notionthat a society benefits from people acting in their(5) own self-interest, without regard to community service.Wrote Smith, “It is not from the benevolence ofthe butcher, the brewer, or the baker, that we canexpect our dinner, but from their regard to their owninterest.” So, the butcher does not cut meat because the(10) community desires it, but rather because it is a meansto earn money. Smith points out that in the absenceof fraud and deception, a mercantile transaction mustbenefit both parties. The buyer of a steak values thesteak more than his money, while the butcher values(15) the money more than the steak.The “invisible hand” is harshly criticized by par-ties who argue that untempered self-interest is immoraland that charity is the superior vehicle for communityimprovement. Some of these people, though, fail to(20) recognize several important aspects of Smith’s concept.First, he was not declaring that people should adopta pattern of overt self-interest, but rather that peoplealready act in such a way. Second, Smith was notarguing that all self-interest is positive for society;(25) he simply did not agree that it was necessarily bad.Standing as a testament to his benevolence, Smithbequeathed much of his wealth to charity.Additionally, the “invisible hand” has come tostand for the resilience of the market after apparently(30) ruinous circumstances. Smith posited that marketsnaturally recover without intervention on the part ofgovernment or similar regulatory bodies. For example,should a product be in excess production, its price in themarket would fall, providing incentive for the public to(35) purchase it, thus reducing the stock. This kind of reac-tion leads to the “natural price” of a good or service,which, Smith believed, was the production cost plusa reasonable profit. This idea would become central to thedoctrine of the laissez-faire economists several(40) generations later.Adam Smith’s Wealth of Nations was written forthe masses and is generally accepted as the first treatiseon economics. For these reasons, the book is thor-oughly studied; for the theory within, Smith’s magnum-(45) opus remains controversial. It stresses low governmentintervention and personal action as the roots of aprosperous market. As societies balance the question ofwhether and how to manipulate their markets, Smithpresents a valuable warning, saying of man, “he intends(50) only his own gain, and he is in this, as in many othercases, led by an invisible hand to promote an end whichwas no part of his intention.”Q.Based on the passage as a whole, which of the following would most likely approximate Smith’s views on competition in the marketplace?a)Competition is a good thing because it keeps prices for goods and services low for the consumer.b)The government should try to eliminate competition because people make purchases based on self-interest.c)Competition is positive, for it causes profit margins to increase and thereby increases market prices.d)The government should foster competition in order to boost the country’s economy in times of recession.Correct answer is option 'B'. Can you explain this answer?.

Solutions for Directions: Read the passages and choose the best answer to each question.PassageSOCIAL SCIENCE: Adam Smith and the “Invisible Hand" DoctrineIn An Inquiry into the Nature and Causes of theWealth of Nations, Scottish economist Adam Smithasserts the power of the “invisible hand,” the notionthat a society benefits from people acting in their(5) own self-interest, without regard to community service.Wrote Smith, “It is not from the benevolence ofthe butcher, the brewer, or the baker, that we canexpect our dinner, but from their regard to their owninterest.” So, the butcher does not cut meat because the(10) community desires it, but rather because it is a meansto earn money. Smith points out that in the absenceof fraud and deception, a mercantile transaction mustbenefit both parties. The buyer of a steak values thesteak more than his money, while the butcher values(15) the money more than the steak.The “invisible hand” is harshly criticized by par-ties who argue that untempered self-interest is immoraland that charity is the superior vehicle for communityimprovement. Some of these people, though, fail to(20) recognize several important aspects of Smith’s concept.First, he was not declaring that people should adopta pattern of overt self-interest, but rather that peoplealready act in such a way. Second, Smith was notarguing that all self-interest is positive for society;(25) he simply did not agree that it was necessarily bad.Standing as a testament to his benevolence, Smithbequeathed much of his wealth to charity.Additionally, the “invisible hand” has come tostand for the resilience of the market after apparently(30) ruinous circumstances. Smith posited that marketsnaturally recover without intervention on the part ofgovernment or similar regulatory bodies. For example,should a product be in excess production, its price in themarket would fall, providing incentive for the public to(35) purchase it, thus reducing the stock. This kind of reac-tion leads to the “natural price” of a good or service,which, Smith believed, was the production cost plusa reasonable profit. This idea would become central to thedoctrine of the laissez-faire economists several(40) generations later.Adam Smith’s Wealth of Nations was written forthe masses and is generally accepted as the first treatiseon economics. For these reasons, the book is thor-oughly studied; for the theory within, Smith’s magnum-(45) opus remains controversial. It stresses low governmentintervention and personal action as the roots of aprosperous market. As societies balance the question ofwhether and how to manipulate their markets, Smithpresents a valuable warning, saying of man, “he intends(50) only his own gain, and he is in this, as in many othercases, led by an invisible hand to promote an end whichwas no part of his intention.”Q.Based on the passage as a whole, which of the following would most likely approximate Smith’s views on competition in the marketplace?a)Competition is a good thing because it keeps prices for goods and services low for the consumer.b)The government should try to eliminate competition because people make purchases based on self-interest.c)Competition is positive, for it causes profit margins to increase and thereby increases market prices.d)The government should foster competition in order to boost the country’s economy in times of recession.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for ACT. Download more important topics, notes, lectures and mock test series for ACT Exam by signing up for free.

Here you can find the meaning of Directions: Read the passages and choose the best answer to each question.PassageSOCIAL SCIENCE: Adam Smith and the “Invisible Hand" DoctrineIn An Inquiry into the Nature and Causes of theWealth of Nations, Scottish economist Adam Smithasserts the power of the “invisible hand,” the notionthat a society benefits from people acting in their(5) own self-interest, without regard to community service.Wrote Smith, “It is not from the benevolence ofthe butcher, the brewer, or the baker, that we canexpect our dinner, but from their regard to their owninterest.” So, the butcher does not cut meat because the(10) community desires it, but rather because it is a meansto earn money. Smith points out that in the absenceof fraud and deception, a mercantile transaction mustbenefit both parties. The buyer of a steak values thesteak more than his money, while the butcher values(15) the money more than the steak.The “invisible hand” is harshly criticized by par-ties who argue that untempered self-interest is immoraland that charity is the superior vehicle for communityimprovement. Some of these people, though, fail to(20) recognize several important aspects of Smith’s concept.First, he was not declaring that people should adopta pattern of overt self-interest, but rather that peoplealready act in such a way. Second, Smith was notarguing that all self-interest is positive for society;(25) he simply did not agree that it was necessarily bad.Standing as a testament to his benevolence, Smithbequeathed much of his wealth to charity.Additionally, the “invisible hand” has come tostand for the resilience of the market after apparently(30) ruinous circumstances. Smith posited that marketsnaturally recover without intervention on the part ofgovernment or similar regulatory bodies. For example,should a product be in excess production, its price in themarket would fall, providing incentive for the public to(35) purchase it, thus reducing the stock. This kind of reac-tion leads to the “natural price” of a good or service,which, Smith believed, was the production cost plusa reasonable profit. This idea would become central to thedoctrine of the laissez-faire economists several(40) generations later.Adam Smith’s Wealth of Nations was written forthe masses and is generally accepted as the first treatiseon economics. For these reasons, the book is thor-oughly studied; for the theory within, Smith’s magnum-(45) opus remains controversial. It stresses low governmentintervention and personal action as the roots of aprosperous market. As societies balance the question ofwhether and how to manipulate their markets, Smithpresents a valuable warning, saying of man, “he intends(50) only his own gain, and he is in this, as in many othercases, led by an invisible hand to promote an end whichwas no part of his intention.”Q.Based on the passage as a whole, which of the following would most likely approximate Smith’s views on competition in the marketplace?a)Competition is a good thing because it keeps prices for goods and services low for the consumer.b)The government should try to eliminate competition because people make purchases based on self-interest.c)Competition is positive, for it causes profit margins to increase and thereby increases market prices.d)The government should foster competition in order to boost the country’s economy in times of recession.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Directions: Read the passages and choose the best answer to each question.PassageSOCIAL SCIENCE: Adam Smith and the “Invisible Hand" DoctrineIn An Inquiry into the Nature and Causes of theWealth of Nations, Scottish economist Adam Smithasserts the power of the “invisible hand,” the notionthat a society benefits from people acting in their(5) own self-interest, without regard to community service.Wrote Smith, “It is not from the benevolence ofthe butcher, the brewer, or the baker, that we canexpect our dinner, but from their regard to their owninterest.” So, the butcher does not cut meat because the(10) community desires it, but rather because it is a meansto earn money. Smith points out that in the absenceof fraud and deception, a mercantile transaction mustbenefit both parties. The buyer of a steak values thesteak more than his money, while the butcher values(15) the money more than the steak.The “invisible hand” is harshly criticized by par-ties who argue that untempered self-interest is immoraland that charity is the superior vehicle for communityimprovement. Some of these people, though, fail to(20) recognize several important aspects of Smith’s concept.First, he was not declaring that people should adopta pattern of overt self-interest, but rather that peoplealready act in such a way. Second, Smith was notarguing that all self-interest is positive for society;(25) he simply did not agree that it was necessarily bad.Standing as a testament to his benevolence, Smithbequeathed much of his wealth to charity.Additionally, the “invisible hand” has come tostand for the resilience of the market after apparently(30) ruinous circumstances. Smith posited that marketsnaturally recover without intervention on the part ofgovernment or similar regulatory bodies. For example,should a product be in excess production, its price in themarket would fall, providing incentive for the public to(35) purchase it, thus reducing the stock. This kind of reac-tion leads to the “natural price” of a good or service,which, Smith believed, was the production cost plusa reasonable profit. This idea would become central to thedoctrine of the laissez-faire economists several(40) generations later.Adam Smith’s Wealth of Nations was written forthe masses and is generally accepted as the first treatiseon economics. For these reasons, the book is thor-oughly studied; for the theory within, Smith’s magnum-(45) opus remains controversial. It stresses low governmentintervention and personal action as the roots of aprosperous market. As societies balance the question ofwhether and how to manipulate their markets, Smithpresents a valuable warning, saying of man, “he intends(50) only his own gain, and he is in this, as in many othercases, led by an invisible hand to promote an end whichwas no part of his intention.”Q.Based on the passage as a whole, which of the following would most likely approximate Smith’s views on competition in the marketplace?a)Competition is a good thing because it keeps prices for goods and services low for the consumer.b)The government should try to eliminate competition because people make purchases based on self-interest.c)Competition is positive, for it causes profit margins to increase and thereby increases market prices.d)The government should foster competition in order to boost the country’s economy in times of recession.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Directions: Read the passages and choose the best answer to each question.PassageSOCIAL SCIENCE: Adam Smith and the “Invisible Hand" DoctrineIn An Inquiry into the Nature and Causes of theWealth of Nations, Scottish economist Adam Smithasserts the power of the “invisible hand,” the notionthat a society benefits from people acting in their(5) own self-interest, without regard to community service.Wrote Smith, “It is not from the benevolence ofthe butcher, the brewer, or the baker, that we canexpect our dinner, but from their regard to their owninterest.” So, the butcher does not cut meat because the(10) community desires it, but rather because it is a meansto earn money. Smith points out that in the absenceof fraud and deception, a mercantile transaction mustbenefit both parties. The buyer of a steak values thesteak more than his money, while the butcher values(15) the money more than the steak.The “invisible hand” is harshly criticized by par-ties who argue that untempered self-interest is immoraland that charity is the superior vehicle for communityimprovement. Some of these people, though, fail to(20) recognize several important aspects of Smith’s concept.First, he was not declaring that people should adopta pattern of overt self-interest, but rather that peoplealready act in such a way. Second, Smith was notarguing that all self-interest is positive for society;(25) he simply did not agree that it was necessarily bad.Standing as a testament to his benevolence, Smithbequeathed much of his wealth to charity.Additionally, the “invisible hand” has come tostand for the resilience of the market after apparently(30) ruinous circumstances. Smith posited that marketsnaturally recover without intervention on the part ofgovernment or similar regulatory bodies. For example,should a product be in excess production, its price in themarket would fall, providing incentive for the public to(35) purchase it, thus reducing the stock. This kind of reac-tion leads to the “natural price” of a good or service,which, Smith believed, was the production cost plusa reasonable profit. This idea would become central to thedoctrine of the laissez-faire economists several(40) generations later.Adam Smith’s Wealth of Nations was written forthe masses and is generally accepted as the first treatiseon economics. For these reasons, the book is thor-oughly studied; for the theory within, Smith’s magnum-(45) opus remains controversial. It stresses low governmentintervention and personal action as the roots of aprosperous market. As societies balance the question ofwhether and how to manipulate their markets, Smithpresents a valuable warning, saying of man, “he intends(50) only his own gain, and he is in this, as in many othercases, led by an invisible hand to promote an end whichwas no part of his intention.”Q.Based on the passage as a whole, which of the following would most likely approximate Smith’s views on competition in the marketplace?a)Competition is a good thing because it keeps prices for goods and services low for the consumer.b)The government should try to eliminate competition because people make purchases based on self-interest.c)Competition is positive, for it causes profit margins to increase and thereby increases market prices.d)The government should foster competition in order to boost the country’s economy in times of recession.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Directions: Read the passages and choose the best answer to each question.PassageSOCIAL SCIENCE: Adam Smith and the “Invisible Hand" DoctrineIn An Inquiry into the Nature and Causes of theWealth of Nations, Scottish economist Adam Smithasserts the power of the “invisible hand,” the notionthat a society benefits from people acting in their(5) own self-interest, without regard to community service.Wrote Smith, “It is not from the benevolence ofthe butcher, the brewer, or the baker, that we canexpect our dinner, but from their regard to their owninterest.” So, the butcher does not cut meat because the(10) community desires it, but rather because it is a meansto earn money. Smith points out that in the absenceof fraud and deception, a mercantile transaction mustbenefit both parties. The buyer of a steak values thesteak more than his money, while the butcher values(15) the money more than the steak.The “invisible hand” is harshly criticized by par-ties who argue that untempered self-interest is immoraland that charity is the superior vehicle for communityimprovement. Some of these people, though, fail to(20) recognize several important aspects of Smith’s concept.First, he was not declaring that people should adopta pattern of overt self-interest, but rather that peoplealready act in such a way. Second, Smith was notarguing that all self-interest is positive for society;(25) he simply did not agree that it was necessarily bad.Standing as a testament to his benevolence, Smithbequeathed much of his wealth to charity.Additionally, the “invisible hand” has come tostand for the resilience of the market after apparently(30) ruinous circumstances. Smith posited that marketsnaturally recover without intervention on the part ofgovernment or similar regulatory bodies. For example,should a product be in excess production, its price in themarket would fall, providing incentive for the public to(35) purchase it, thus reducing the stock. This kind of reac-tion leads to the “natural price” of a good or service,which, Smith believed, was the production cost plusa reasonable profit. This idea would become central to thedoctrine of the laissez-faire economists several(40) generations later.Adam Smith’s Wealth of Nations was written forthe masses and is generally accepted as the first treatiseon economics. For these reasons, the book is thor-oughly studied; for the theory within, Smith’s magnum-(45) opus remains controversial. It stresses low governmentintervention and personal action as the roots of aprosperous market. As societies balance the question ofwhether and how to manipulate their markets, Smithpresents a valuable warning, saying of man, “he intends(50) only his own gain, and he is in this, as in many othercases, led by an invisible hand to promote an end whichwas no part of his intention.”Q.Based on the passage as a whole, which of the following would most likely approximate Smith’s views on competition in the marketplace?a)Competition is a good thing because it keeps prices for goods and services low for the consumer.b)The government should try to eliminate competition because people make purchases based on self-interest.c)Competition is positive, for it causes profit margins to increase and thereby increases market prices.d)The government should foster competition in order to boost the country’s economy in times of recession.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Directions: Read the passages and choose the best answer to each question.PassageSOCIAL SCIENCE: Adam Smith and the “Invisible Hand" DoctrineIn An Inquiry into the Nature and Causes of theWealth of Nations, Scottish economist Adam Smithasserts the power of the “invisible hand,” the notionthat a society benefits from people acting in their(5) own self-interest, without regard to community service.Wrote Smith, “It is not from the benevolence ofthe butcher, the brewer, or the baker, that we canexpect our dinner, but from their regard to their owninterest.” So, the butcher does not cut meat because the(10) community desires it, but rather because it is a meansto earn money. Smith points out that in the absenceof fraud and deception, a mercantile transaction mustbenefit both parties. The buyer of a steak values thesteak more than his money, while the butcher values(15) the money more than the steak.The “invisible hand” is harshly criticized by par-ties who argue that untempered self-interest is immoraland that charity is the superior vehicle for communityimprovement. Some of these people, though, fail to(20) recognize several important aspects of Smith’s concept.First, he was not declaring that people should adopta pattern of overt self-interest, but rather that peoplealready act in such a way. Second, Smith was notarguing that all self-interest is positive for society;(25) he simply did not agree that it was necessarily bad.Standing as a testament to his benevolence, Smithbequeathed much of his wealth to charity.Additionally, the “invisible hand” has come tostand for the resilience of the market after apparently(30) ruinous circumstances. Smith posited that marketsnaturally recover without intervention on the part ofgovernment or similar regulatory bodies. For example,should a product be in excess production, its price in themarket would fall, providing incentive for the public to(35) purchase it, thus reducing the stock. This kind of reac-tion leads to the “natural price” of a good or service,which, Smith believed, was the production cost plusa reasonable profit. This idea would become central to thedoctrine of the laissez-faire economists several(40) generations later.Adam Smith’s Wealth of Nations was written forthe masses and is generally accepted as the first treatiseon economics. For these reasons, the book is thor-oughly studied; for the theory within, Smith’s magnum-(45) opus remains controversial. It stresses low governmentintervention and personal action as the roots of aprosperous market. As societies balance the question ofwhether and how to manipulate their markets, Smithpresents a valuable warning, saying of man, “he intends(50) only his own gain, and he is in this, as in many othercases, led by an invisible hand to promote an end whichwas no part of his intention.”Q.Based on the passage as a whole, which of the following would most likely approximate Smith’s views on competition in the marketplace?a)Competition is a good thing because it keeps prices for goods and services low for the consumer.b)The government should try to eliminate competition because people make purchases based on self-interest.c)Competition is positive, for it causes profit margins to increase and thereby increases market prices.d)The government should foster competition in order to boost the country’s economy in times of recession.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice ACT tests.