Question

What basic principle of mercantilism was disproved by Adam Smith in his book, The Wealth of Nations?

that the rich could only get richer if the poor had a way to improve their own lives

that foreign goods were always inferior because British factories were better

that workers would stop working if they were not provided with a minimum wage

that there was a fixed and limited amount of wealth in the world

Answer 1

That there was a fixed and limited amount of wealth in the world.

Adam Smith argued that wealth is created through production, specialization, and free trade, so trade is not zero-sum — it can make all parties richer rather than simply redistributing a fixed amount.