Which of the Following Contributed to the Success of Free

question 96

Multiple Choice

Which of the following contributed to the success of free trade advocates during the Revolutionary War?

• A) the publication of Adam Smith's The Wealth of Nations
• B) Isaac Newton's explanation of the law of gravity as applied to economics
• C) the failure of wartime tariffs to solve the problem of the national debt
• D) riots over inflation in the streets of Boston
• E) memories of the despised Intolerable Acts

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Definitions:

Profits

The financial gain achieved when the revenues generated from business activities exceed the expenses, taxes, and costs incurred in operating the business.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Economic Profits

The excess of total revenue over total costs, including both explicit and implicit costs, reflecting the financial gain in terms of opportunity costs.

Price-Taker Market

A market situation in which the sellers or buyers have no control over the prices at which they buy or sell goods or services.