Question

1. why did adam smith believe that factory workers should be paid higher wages?

adam smith knew that higher wages would grow the economy.
adam smith wanted the government to set minimum wage limits.
adam smith believed on moral grounds that all men deserved a living wage.
adam smith thought higher wages would prevent a transition to socialism.

Explanation:

Adam Smith, a foundational economist, argued that higher wages for workers would increase their productivity and purchasing power. This would drive demand for goods, stimulating overall economic growth, which aligns with his views on market dynamics and wealth creation. The other options are inconsistent with his theories: he opposed government wage-setting, did not center his argument on moral living wages as the core reason, and socialism as a system did not exist in his era to be a concern.

Answer:

A. Adam Smith knew that higher wages would grow the economy.