UK A-Levels Politics Practice Exam

What is the main objective of the Adam Smith Institute?

1. Promoting social welfare solutions

2. Promoting free market solutions

3. Fostering international cooperation

4. Addressing environmental issues

The correct answer is: Promoting free market solutions

The primary objective of the Adam Smith Institute is to promote free market solutions. Established in 1975, the institute advocates for policies that enhance economic freedom, individual liberty, and market-driven approaches to economic challenges. It seeks to provide a framework where competition and entrepreneurial spirit can thrive, arguing that such conditions lead to greater innovation, efficiency, and prosperity. The institute is known for its research and publication of policies that align with classical liberal economics, reflecting the ideas of Adam Smith, who emphasized the importance of free markets in achieving economic growth and societal well-being. While the institute may acknowledge the importance of social welfare, international cooperation, and environmental issues, these are not its central focus. Instead, its efforts are predominantly centered on advocating for less government intervention and more reliance on market mechanisms to address various issues.