answer the following questions in full sentences. provide at least 2 - 3 sentences for answer. 1. according…

Brief Explanations:

1. According to Adam Smith, people provide goods and services to others out of self - interest. They aim to gain something in return, such as money or other benefits. By satisfying the needs of others, they can meet their own needs. For example, a baker bakes bread and sells it to customers to earn a living.
2. The idea of self - interest encourages economic activity as individuals seek to maximize their own well - being. When people pursue their self - interest, they engage in production, trade, and innovation. For instance, an entrepreneur starts a business to make a profit, which in turn creates jobs and provides goods or services to the market, stimulating economic growth.

Answer:

1. According to Adam Smith, people provide goods and services to others because of self - interest. They hope to obtain rewards like money or other advantages by fulfilling the needs of others, which helps them meet their own requirements.
2. The idea of self - interest encourages economic activity as individuals strive to enhance their own well - being. In the pursuit of self - interest, they engage in various economic activities such as production, trade, and innovation, which contribute to economic growth.