While the Han dynasty established the Silk Road, the Tang dynasty developed the route to its fullest potential. Examine the map of the Silk Road. Based on the map, which statement is most likely true?

Europe

Mediterranean Sea 2

BEYP

China

Persia

Arbin

b

ia

India

Somalia

Indian Occan

—

-

Land routes

Water routes

A. The Silk Road increased contact between China and the Middle East.

B. The Silk Road helped India to become China's biggest trade ally.

C. The Silk Road allowed China to conduct sea trade with Persia.

D. The Silk Road established China as an agricultural economy.

C. The Silk Road allowed China to conduct sea trade with Persia.

smith proposed the idea of the invisible hand—the tendency of free markets to regulate themselves by means of competition, supply and demand, and self-interest. smith is also known for his theory of compensating wage differentials, meaning that dangerous or undesirable jobs tend to pay higher wages to attract workers to these positions, but he is most famous for his 1776 book: "an inquiry into the nature and causes of the wealth of nations."

ultimately through the ideas presented in "the wealth of nations," smith changed the import/export business, created the concept of what is now known as gross domestic product (gdp) and argued for free exchange.

before the release of "the wealth of nations," countries declared their wealth based on the value of their gold and silver deposits. however, smith’s work was highly critical of mercantilism; he argued that instead countries should be evaluated based on their levels of production and commerce. this sentiment created the basis for measuring nation’s prosperity based on a metric called gdp.

before smith’s book, countries were hesitant to trade with other countries, unless it benefited them. however, smith argued that a free exchange should be created, as both sides trading become better off. this led to the increase in imports and exports and countries judging their value accordingly. smith also argued for a limited government. he wanted to see a hands-off government and legislation conducive an open and free market. smith did see the government responsible for some sectors, however, including education and defense.