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Economic liberalism was the prevailing economic philosophy in much of the nineteenth and early twentieth centuries, and the U.S. economy developed within its framework. Economic liberalism promoted freedom of action for the individual and the firm through the doctrines of free trade, self-interest, private property, laissez-faire, and competition.
According to this philosophy, individuals were free to seek their own occupations, to enter any business, and to act as they saw fit to improve their economic welfare. Economic society was held together by self-interest. Self-interest was thus the motivating force of the economy. For example, to increase personal economic welfare, an individual might decide to produce goods and sell them for profit. But in so doing, that individual automatically benefited the community as well—by purchasing raw materials, providing employment, and supplying goods or services. A worker seeking increase his or her wages could do so by increasing productivity. This, too, benefited the employer and the community in general. According to Adam Smith, the individual, in seeking personal gain, was led by an invisible hand to promote the welfare of the whole community.
Competition was the regulation of the economy under economic liberalism. Business competed with one another for consumer trade by developing new and better products and by selling existing products at lower prices. Free entry into the market ensured adequate competition, and prices were determined by the free forces of supply and demand. Competitive foresees determined not only the prices of goods and services bust also wage rates.
Since a beneficial self-interest was the motivating and driving force of the economy and since competition was to serve as the regulator of the economy, a policy of laissez-faire prevailed. According to this policy, the government kept its hands off the economic activities of individuals and businesses. Its economic rolls were strictly to protect private property, to enforce contracts, and to act as a judge in economic disputes.
1. Concerning “economic liberalism”, which of the following is true?
2. According to the passage, people exchange goods and services in order to ______.
3. Which of the following is the best interpretation for Adam Smith’s theory?
4. Competitive forces have the following functions except ______.
5. According to the policy of laissez-faire, the government should ______.

问题1选项
A.It was an influential philosophy in the 19th and 20th centuries.
B.The development of the U.S. as a nation owes much to this philosophy.
C.It is about the freedom of action in the field of economic.
D.It is about the doctrines of private-sector economy.
问题2选项
A.satisfy the needs of other people
B.satisfy their own needs
C.form a society
D.promote division of labor
问题3选项
A.Individuals are keen on their own interest.
B.In their sub-consciousness, people wish to serve the community.
C.In pursing their self-interest, individuals bring benefits to society.
D.The individuals’ economic behavior is regulated by some invisible being.
问题4选项
A.forcing the businesses to develop new and better products
B.giving every individual a fair chance of a better job
C.to help determine the prices of goods and services
D.to help regulate the wages of people employed
问题5选项
A.frequently intervene the market
B.strictly regulate the market
C.given the market much freedom
D.intervene the market only when it likes
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