Question

1. Adam Smith favors a policy of laissez faire in managing economic activities. Why?

2. Economics deals with the efficient use of resources? Why?

3. Marginal analysis tends to produce more optimal outcomes when working with scarce resources. How?

4. It is possible for everyone to enjoy comparative advantage in a task of their choosing. Why?

5. Prices and wages help coordinate economic activities. How?

6. Friedrich Hayek wrote,