In His Farewell Address, George Washington Advised That the United

question 6

Multiple Choice

In his farewell address, George Washington advised that the United States should

• A) build upon its friendly relations with France.
• B) maintain a close alliance with Great Britain.
• C) steer clear of party factionalism and avoid foreign entanglements.
• D) act as an impartial arbitrator in international disputes.
• E) maintain a large standing army.

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Definitions:

Opportunity Costs

The financial loss associated with overlooking the alternative that is considered second-best when making a choice.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the total quantity of output produced.

Competitive Market

A market structure characterized by a large number of sellers and buyers, free entry and exit, and products that are similar enough to be considered substitutes, leading to price competition.

Economic Profit

The difference between a company's total revenue and its total costs, including both explicit and implicit costs, representing the financial gain in excess of opportunity costs.