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:

Loss on Sale

A financial outcome in which the proceeds from the sale of an asset are less than its carrying value on the books.

Stock Investment

The purchase of shares in a company to gain a financial return in the form of dividends or appreciation in the share price.

Equity Method Investments-Jay

An accounting technique used to record investments in other companies, where the investment is significant but less than controlling, adjusting the value to account for the investor's share of the earnings or losses.

Cash Dividends

A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.