Adam Smith's the Wealth of Nations Argued That

question 11

Multiple Choice

Adam Smith's The Wealth of Nations argued that

• A)countries should make laws to maximize their exports and minimize their imports.
• B)countries should try to accumulate as much gold and silver as possible.
• C)countries should conquer other territories and obtain colonies to increase their wealth.
• D)countries should allow the unrestricted functioning of the free economy,which would ensure the pursuit of private interests,and,by result,public interests.
• E)real wealth is not money,but knowledge.

---

Definitions:

Raw Materials

Basic materials and substances used in the initial stages of production or manufacturing.

Month

A unit of time, typically comprising 28 to 31 days, used as a measure for organizing calendar time.

Underapplied Overhead

A situation in cost accounting where the allocated manufacturing overhead cost is less than the actual overhead incurred.

Manufacturing Overhead

All indirect costs associated with manufacturing, including maintenance, utilities, and indirect labor.