Free Practice Question
RC · Reading Comprehension
655-705
Short Passage - Humanities
Reading Passage
In the wealth of nations (1776), Scottish economist Adam Smith asserted that the propensity of “truck, barter and exchange” was both the foundation of commerce and a given quality of human nature, driven by individual desire. Smith’s view that self-interest dominated the business that emerged in early modern (sixteenth- and seventeenth century) England has had tremendous effects on how such relations have been perceived. Today it is typically assumed, for instance, that the development of business relations weakened the spirit of cooperation that characterized village communities and encouraged a spirit of individualism and self-betterment that ran counter to community interest.
However, such a view fails to account for the language that people in early modern England used to articulate their understanding of business relations, language that stressed credit, trust, obligations, and contracts, rather than self-interest. Throughout this period, most business transactions were conducted on credit—of plain dealing and of the keeping of promises —dominated the way in which business relations were conceived. Individual profit and solvency were important, but neither could be achieved without the trust and direct cooperation of one’s neighbours. As a result, buying and selling, far from breaking up communities, actually created numerous bonds that held villages together.
However, such a view fails to account for the language that people in early modern England used to articulate their understanding of business relations, language that stressed credit, trust, obligations, and contracts, rather than self-interest. Throughout this period, most business transactions were conducted on credit—of plain dealing and of the keeping of promises —dominated the way in which business relations were conceived. Individual profit and solvency were important, but neither could be achieved without the trust and direct cooperation of one’s neighbours. As a result, buying and selling, far from breaking up communities, actually created numerous bonds that held villages together.
It can be inferred that the author of the passage believes that economic historians whose views have been influenced by Adam Smith have failed to examine which of the following?
Answer Choices
Correct answer marked belowA
The power of business relations to shape moral values and beliefs
B
The significance of human nature in shaping economic developments and social structure
C
The importance of village communities in determining the economic well-being of larger society
D
The consequence of individual communities of changes in a country’s economic structure
The actual language used by people in village communities to refer to their business dealings
Correct
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What it tests
Your ability to understand a passage, its structure, and what the author is really saying. At the 655-705 level, accuracy and speed both matter.
Common trap
Answering from memory or outside knowledge instead of strictly from the passage.
Details
Difficulty
655-705
Type
RC
Category