Which of the Following Scenarios Would Best Exemplify Adam Smith's

question 87

Multiple Choice

Which of the following scenarios would best exemplify Adam Smith's view of best serving the interests of society?

• A) Individuals are selected to fill certain positions within the economy of their nation according to the needs of the nation as a whole.
• B) Markets are carefully regulated to ensure that all individuals within a nation are treated fairly and charged standardized prices.
• C) A country only has a limited amount of space for college students and uses a type of lottery system to determine who gets these spaces.
• D) Government scarcely exists in this country, and transactions are based on a system of barter, or trading goods, for other goods.
• E) Individuals in the country may pursue their own economic gain and self-interest by doing whatever is best for them.

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Definitions:

Internal Rates

An implied or internal rate referring to the interest rates or yields on investments, loans, or other financial products within an organization.

Break-even

The point at which total revenues equal total costs, resulting in no net profit or loss.

Accounting Break-even

The point at which a company's revenues exactly cover its expenses, without generating a profit or a loss.

Cash Break-even

Cash break-even is the point at which a business generates just enough revenue to cover its cash outflows, without making a profit or loss.