Which of the Following Was a Key Belief of Adam

question 12

Multiple Choice

Which of the following was a key belief of Adam Smith?

• A) he felt that human goodness would provide adequate goods and services to everyone.
• B) he stressed that limited exchange and command economies would prevent the exploitation of the poor.
• C) he believed that individuals pursuing their own interests would direct economic activity in the most advantageous way.
• D) he lectured about the importance of gold and silver in providing a stable monetary system.

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Definitions:

Operating Expenses

Costs associated with the day-to-day functions of a business, excluding cost of goods sold.

Machine-Hours

A measure of production time used, indicating the number of hours machines are operated in the manufacturing process.

Maintenance Costs

Expenses associated with the routine care and preservation of assets to keep them in operational condition.

Variable Operating Expense

Expenses that fluctuate in proportion to the amount of production or the volume of sales.