Question

Adam Smith's argument for the free market has an ethical foundation in

Select one:

a. Relativism

b. Utilitarianism

c. Deontology

Answer 1

Option c

Relativism: The belief that an action right or wrong can only be judged in relation to others

Utilitarianism: The actions are right if it benefits majority

Deontology: Determines the actions as right if it is morally right

Adam Smith believed that the market works best when there is no external intervention and reaches the equilibrium depending on the market demand and forces. He completely rejected the relativism and utilitarianism, believed that the market is a mechanism of morality and social support (Deontology)