Early Theorists Like Adam Smith and David Ricardo Laid the Foundation

question 75

Multiple Choice

Early theorists like Adam Smith and David Ricardo laid the foundation for today's capitalist economy based on:

• A) individual self-interest
• B) free market rules governing the use of labour, land, and capital
• C) free trade among nations
• D) following the invisible hand of the market via supply and demand
• E) All of the above

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Definitions:

Controller

The executive in charge of the accounting function in most companies. The controller generally reports to the CFO.

Financial Relationships

The analysis and assessment of the connections between various financial metrics and entities, including investments, expenses, revenues, and profits.

Financial Theory

A branch of economics that aims to understand and explain how financial markets operate, the structure of capital markets, and the pricing of financial instruments.

Economics

The social science that studies how people use scarce resources to produce valuable commodities and distribute them among different people.