The best answer is A. In reference to Smith’s Wealth of Nations, “the book is thoroughly studied; for the theory within, Smith’s magnum opus remains controversial.” The phrase “magnum opus” means “a great work or masterpiece,” which makes sense in the context of the passage since Smith’s Wealth of Nations is portrayed as being a far-reaching economic treatise that is studied by the masses.

The best answer is G. The passage states that “Adam Smith asserts the power of the ‘invisible hand,’ the notion that a society benefits from people acting in their own self-interest, without regard to community service.” This corresponds with answer choice G. The other answer choices are not supported by details found in the passage.

The best answer is B. The passage discusses Smith’s theory of markets and the “natural price” of goods and services, stating that “For example, should a product be in excess production, its market price would fall.” If a decrease in market price is caused by having too much of a product, you can safely assume that an increase in market price would be caused by a shortage in production of a product. Therefore, answer choice B is the best choice. Answer choice A is incorrect because the passage states that stock is reduced if a product is in excess production, not during a shortage of that product. Answer choice C may appear to be correct; however, Smith’s theory states that “natural prices” include a “reasonable profit” but does not indicate whether profit margins fluctuate with excesses/shortages of products.

The best answer is J. The passage tells you that “the butcher does not cut meat because the community desires it, but rather because it is a means to earn money … The buyer of a steak values the steak more than his money, while the butcher values the money more than the steak.” Applying this to the baker, you can infer that the baker bakes in order to earn money and that the community members value the bread more than their money. This corresponds with answer choice J. All of the other answer choices contradict the example set forth in the butcher illustration.

The best answer is C. The passage states that Smith believed that the “natural price” of goods and services should equal “the production cost plus a reasonable profit.” Since “profuse” means “extravagant or excessive,” Adam Smith would not see a profuse amount of profits as being “reasonable.” Therefore, answer choice C is correct. All of the other answer choices are supported by details found in the passage.

The best answer is J. Those people who criticize the Wealth of Nations “argue that untempered self-interest is immoral,” or in other words, excessive self-interest is corrupt or unethical, answer choice J. The other answer choices are beyond the scope of the passage and are not illustrated as being reasons for criticisms of Adam Smith’s Wealth of Nations.

The best answer is A. According to the passage, “Standing as a testament to his benevolence, Smith bequeathed much of his wealth to charity.” “Benevolence” is a “tendency to perform kind or charitable acts,” which best supports answer choice A. Answer choices B and D can be eliminated because it is implied that Smith voluntarily donated much of his wealth; the words “obligatory” and “requisite” imply that Smith was required to donate his money. Answer choice C does not make sense within the context of the passage.

The best answer is H. Smith’s quotation begins by stating that man “intends only his own gain,” which insinuates that people are naturally selfish and are out for their own interests. This eliminates answer choice J. The quotation continues on to say that man is “led by an invisible hand to promote an end which was no part of his intention.” This statement tells you that people are led towards unintentionally fulfilling certain objectives by the “invisible hand.” This suggests that the “invisible hand” directs the actions of selfish individuals and creates an outcome—one that ultimately benefits society—not anticipated by the individual. Answer choice G may appear to be correct, but the quotation does not indicate that the “invisible hand” discourages people from following their selfish interests; it merely says that the hand promotes some actions that are unintentional for man.

The best answer is C. When discussing the theory of natural price, the passage states that “This idea would become central to the doctrine of the laissez-faire economists several generations later.” This supports answer choice C. The other answer choices are not supported by the passage.

The best answer is F. Answer choices G and J can be eliminated immediately; Smith was an advocate for “low government intervention” and believed that markets recover from recession “without intervention on the part of government or similar regulatory bodies.” Answer choice F is the best answer choice because in a competitive market, there are many options for comparable products. This can be paralleled to Smith’s hypothesis on excessive production of products—the more available a product is, the lower its market price falls. Therefore, competition would be a good thing for consumers in keeping prices reasonably low.