Which of the Following Is an Important Premise of Smith's

question 58

Multiple Choice

Which of the following is an important premise of Smith's conclusions about economic prosperity?

• A) Individual freedom is necessary if a society is to prosper.
• B) Understanding the concept of survival of the fittest will lead to prosperity.
• C) Determining what motivates people will lead to prosperity.
• D) Command economies and structured markets must be in place before we can work toward prosperity.

---

Definitions:

Operating Expense

Costs related to the daily operations of a business, excluding the cost of production.

Credit Terms

The payment terms and conditions agreed upon by the buyer and seller, detailing the time period in which the buyer must pay the seller for the goods or services received.

Merchandise

Goods that are purchased, held, and resold by a business in the normal course of its operations.

Discount Offered

A reduction applied to the regular price of goods or services as a form of promotion or negotiation.