In His Book, an Inquiry into the Nature and Causes

question 615

Multiple Choice

In his book, An Inquiry into the Nature and Causes of the Wealth of Nations, Adam Smith credits economies of scale to

• A)competition.
• B)opportunity costs.
• C)specialization.
• D)incentives.

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Definitions:

Inverted-U Hypothesis

A theory suggesting that there is an optimal level of arousal for performance, with both too little and too much arousal leading to poorer performance.

Optimal Level

The most favorable or desirable degree or amount of something for achieving the best result or outcome.

Actual Stressors

Real and tangible factors in one's environment that cause stress.

Anticipatory Stressors

Upcoming or future events that are perceived to be threatening.