1What motivates humans according to Smith?
Self-interest tempered by empathy
2What is the propensity to truck, barter, and exchange?
A natural human tendency to trade
3Why do differences arise among people?
Habit and custom, not deep natural differences
4Why can’t we rely on benevolence?
Self-interest is more reliable than kindness
5What is the division of labor?
Specialization of tasks that increases productivity
6What example illustrates the division of labor?
The pin factory
7What is the labor theory of value?
Value measured by the labor needed to produce a good
8What is the invisible hand?
Self-interest unintentionally promoting the public good
9What role should government play for Smith?
Defense, justice, and public works
10What is crony capitalism?
Government favoritism toward powerful groups