Question

Which of the following books explained that rational self-interest in a free- market economy leads to economic well-being?

• A. The Division of Labour in Society
• B. The Market Wheel
• C. The Wealth of Nations
• D. Rulers, Townsmen and Bazaars; North Indian Society in the Age of British Expansion

Answer 1

The Correct Option is C

”The Wealth of Nations,” written by Adam Smith in 1776, explains how individuals pursuing their own self-interest in a free market can lead to overall economic prosperity and well-being.

Answer 2

"The Wealth of Nations" is a seminal work by Adam Smith, first published in 1776. In this book, Smith explains how individuals acting in their own rational self-interest in a free-market economy can lead to economic prosperity for society as a whole. This idea is famously captured in the concept of the invisible hand, where the pursuit of individual gain results in the overall economic well-being of society.

• The Division of Labour in Society (Option A): This is a work by Émile Durkheim, a sociologist, and is not focused on economic self-interest or free markets.
• The Market Wheel (Option B): This is not a well-known work in economics.
• Rulers, Townsmen and Bazaars: North Indian Society in the Age of British Expansion (Option D): This book by C.A. Bayly discusses Indian society during British rule, not the principles of free-market economics.

Therefore, "The Wealth of Nations" is the correct answer.