question 14 of 20 read the following excerpt from adam smiths the wealth of nations. how are his economic…

question 14 of 20 read the following excerpt from adam smiths the wealth of nations. how are his economic philosophies reflected in modern free - enterprise systems? a monopoly granted either to an individual or to a trading company has the same effect as a secret in trade or manufactures. the monopolists, by keeping the market constantly understocked, by never fully supplying the effectual demand, sell their commodities much above the natural price, and raise their emoluments, whether they consist in wages or profit, greatly above their natural rate. the price of monopoly is upon every occasion the highest which can be got. the natural price, or the price of free competition, on the contrary, is the lowest which can be taken, not upon every occasion, indeed, but for any considerable time together. the one is upon every occasion the highest which can be squeezed out of the buyers, or which, it is supposed, they will consent to give: the other is the lowest which the sellers can commonly afford to take, and at the same time continue their business. 1. adam smith, an inquiry into the nature and causes of the wealth of nations (london: methuen & co., ltd., 1904), book i: chapter vii, book iv: chapter ix, http://www.econlib.org/library/smith/smwncover.html. a. nations using a free - enterprise system must establish government controls to regulate health and safety of products. b. the united states practices a form of capitalism in which workers pay taxes toward social welfare programs. c. european countries have become economic leaders in allowing businesses to operate without government regulation. d. capitalist countries rely on competition between businesses to set fair prices for goods.

question 14 of 20 read the following excerpt from adam smiths the wealth of nations. how are his economic philosophies reflected in modern free - enterprise systems? a monopoly granted either to an individual or to a trading company has the same effect as a secret in trade or manufactures. the monopolists, by keeping the market constantly understocked, by never fully supplying the effectual demand, sell their commodities much above the natural price, and raise their emoluments, whether they consist in wages or profit, greatly above their natural rate. the price of monopoly is upon every occasion the highest which can be got. the natural price, or the price of free competition, on the contrary, is the lowest which can be taken, not upon every occasion, indeed, but for any considerable time together. the one is upon every occasion the highest which can be squeezed out of the buyers, or which, it is supposed, they will consent to give: the other is the lowest which the sellers can commonly afford to take, and at the same time continue their business. 1. adam smith, an inquiry into the nature and causes of the wealth of nations (london: methuen & co., ltd., 1904), book i: chapter vii, book iv: chapter ix, http://www.econlib.org/library/smith/smwncover.html. a. nations using a free - enterprise system must establish government controls to regulate health and safety of products. b. the united states practices a form of capitalism in which workers pay taxes toward social welfare programs. c. european countries have become economic leaders in allowing businesses to operate without government regulation. d. capitalist countries rely on competition between businesses to set fair prices for goods.

Answer

Answer:

D. Capitalist countries rely on competition between businesses to set fair prices for goods.

Brief Explanation:

The text emphasizes that the natural price of free - competition is the lowest sustainable price, contrasting with monopoly prices. Capitalist countries with free - enterprise systems rely on competition to set fair prices, which aligns with Adam Smith's ideas.