The Economic Principles Argued by Smith Said That a Country

question 44

Multiple Choice

The economic principles argued by Smith said that a country would prosper if all of these conditions were met except ______________.

• A) the government did not set prices
• B) taxes were kept low
• C) nations restricted their exports
• D) government expenditures were minimal
• E) governments did not impose tariffs

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Definitions:

Social Security Trust Fund

A governmental fund that collects payroll taxes to provide retirement, disability, and survivors' benefits.

Federal Government

The national government of a federation, responsible for national affairs, distinct from state or local governments.

Bonds

Fixed-income securities that represent loans made by investors to borrowers, typically corporate or governmental, which pay interest over a defined period and return the principal at maturity.

Baby Boomers

The demographic cohort born approximately between 1946 and 1964, experiencing significant political, economic, and social changes.