At the Beginning of the Eighteenth Century

question 117

Multiple Choice

At the beginning of the eighteenth century,

• A) the old order was under severe attack.
• B) the old order still remained strong.
• C) republicanism was in ascendant.
• D) enlightened absolutism had proved to be a failure.
• E) democracy was spreading.

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Definitions:

Circular Flow Model

A diagram that demonstrates the movement of money, resources, and goods and services in an economy between households, firms, and the government.

Resource Markets

Marketplaces where resources (like labor, capital, and raw materials) used to produce goods and services are bought and sold.

Invisible Hand

A metaphor coined by Adam Smith to describe the self-regulating nature of the marketplace where individuals' pursuit of self-interest benefits society.

Economic Efficiency

A state where resources are allocated in a way that maximizes the production of goods and services at the lowest cost.