Which economic system is Adam Smith advocating for in the provided text from 'The Wealth of Nations'?FeudalismCapitalismMercantilismSocialism

Adam Smith, in his seminal work 'The Wealth of Nations', advocates primarily for Capitalism. He argues for the importance of free markets and competition as mechanisms for promoting economic growth and efficiency. Smith introduces concepts like the "invisible hand," which suggests that individuals pursuing their self-interest inadvertently contribute to the overall economic well-being and resource allocation within society. This approach contrasts sharply with Feudalism, Mercantilism, and Socialism, where state controls and interventions play a significant role in economic activities.

In summary, Adam Smith champions Capitalism as the optimal economic system for fostering innovation, wealth creation, and individual freedom through market dynamics.