A hundred years after the Navigation Acts a British economist named Adam Smith wrote a book called The Wealth of Nations. Smith proposed that the best way for a nation to improve its economy was to remove any restrictions on free trade and allow the supply or demand for goods to determine prices and where goods are sold. What would Adam Smith have thought of the Navigation Acts?
Select one:
a. They were helpful because they told merchants where to buy and sell.
b. They were helpful because they added gold bullion to the treasury.
c. They were harmful because they restricted free trade.
d.

Question

A hundred years after the Navigation Acts a British economist named Adam Smith wrote a book called The Wealth of Nations. Smith proposed that the best way for a nation to improve its economy was to remove any restrictions on free trade and allow the supply or demand for goods to determine prices and where goods are sold. What would Adam Smith have thought of the Navigation Acts?
Select one:
a. They were helpful because they told merchants where to buy and sell.
b. They were helpful because they added gold bullion to the treasury.
c. They were harmful because they restricted free trade.
d.

anonymous · Answer

d. They were harmful because they led to smuggling on the part of American merchants.