An Insight First Fully Developed by Adam Smith Is That

question 37

Multiple Choice

An insight first fully developed by Adam Smith is that

• A)all individuals are motivated solely by self- interest.
• B)individual self- interest is the only necessary force for social order.
• C)self- interest, not benevolence, is the foundation of economic order.
• D)self- interest undermines effective economic order.
• E)without benevolence production would not occur.

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Definitions:

Cost Of Goods Sold

Direct expenditures involved in producing the products a company sells, inclusive of materials and labor.

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting operating expenses, interest, and taxes.

Profit Center

A branch or division of a company that is directly responsible for generating profit, measured by its success in contributing to the company's bottom line.

Cost Center

A department or function within an organization to which costs can be allocated, but which does not directly generate revenue.