Question

directions: choose the one best answer to each question.
questions 1 and 2 refer to the following passage.
questions 3 and 4 refer to the following diagram.

this passage is from the wealth of nations, an economics book written by adam smith in 1776. it deals with how business activity takes place.
\it is not from the benevolence kindness of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own self interest. we address ourselves not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages.\

1. what economic value is most apparent in this excerpt?

a. government will set the prices of goods and the wages of workers.
b. businesses will make products that they can sell for a profit.
c. consumers will be forced to buy whatever firms produce.
d. businesses will put the interests of society over their own interests.

1. when smith describes the self-interest of the butcher, brewer, and baker, what is he referring to?

a. their desire to make a profit
b. their incentive to increase morale
c. the need for equilibrium
d. the need for increased productivity

economic recovery, great depression
fdr and congress create millions of jobs through new deal programs (wpa, pwa, ccc). → workers receive wages and spend money on food, clothing, shelter, and other products. → because of higher consumer demand for products, businesses hire more workers and produce more products. → economic recovery begins.

1. what was the first cause of the economic recovery during the great depression?

a. workers received higher wages.
b. there was higher consumer demand for products.
c. workers spent more money.
d. fdr and congress created millions of new jobs.

1. which headline would go best with the diagram?

a. \depression deepens with no end in sight\
b. \president roosevelt blames congr for economic mess\.
c. \fdr plans job creation program save the economy\
d. \government accepts blame for economic downturn\

Explanation:

1. For question 1: The excerpt focuses on businesses acting out of self-interest, which aligns with producing goods for profit. Options A, C, and D contradict the passage's focus on self-interest over government control, forced consumption, or prioritizing society.
2. For question 2: Adam Smith's reference to self-interest for the butcher, brewer, and baker directly refers to their drive to earn profit by selling goods to consumers. Other options do not match the core idea of self-interest in this context.
3. For question 3: The diagram shows the first step of economic recovery is FDR and Congress creating jobs via New Deal programs, which starts the chain reaction of recovery.
4. For question 4: The diagram centers on FDR's job creation programs leading to economic recovery, so the headline about these programs saving the economy is the best fit. Other headlines focus on depression deepening, blame, which do not match the recovery theme.

Answer:

1. B. Businesses will make products that they can sell for a profit.
2. A. their desire to make a profit
3. D. FDR and Congress created millions of new jobs.
4. C. "FDR Plans Job Creation Program Save the Economy"