Economics Chapters 1 - 5

59 Questions | Total Attempts: 33

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Economics Chapters 1 - 5

Questions and Answers
  • 1. 
    Who wrote the wealth of nations?
    • A. 

      John Adams

    • B. 

      E.I. du Pont

    • C. 

      Pierre Samuel du Pont

    • D. 

      Adam Smith

  • 2. 
    Who used his resources wisely to make gunpowder for President Jefferson?
    • A. 

      John Adams

    • B. 

      E.I. du Pont

    • C. 

      Pierre Samuel du Pont

    • D. 

      Adam Smith

  • 3. 
    What type of economy is directed by customs and habits?
    • A. 

      Traditional economy

    • B. 

      Free market economy

    • C. 

      Command economy

    • D. 

      Mixed economy

  • 4. 
    What type of economy is directed by an "invisible hand"? 
    • A. 

      Traditional economy

    • B. 

      Free market economy

    • C. 

      Command economy

    • D. 

      Mixed economy

  • 5. 
    What type of economy would a Communist-controlled country have?
    • A. 

      Traditional economy

    • B. 

      Free market economy

    • C. 

      Command economy

    • D. 

      Mixed economy

  • 6. 
    What type of good is a forklift that is used to transport imported goods within a warehouse?
    • A. 

      Capital

    • B. 

      Imported

    • C. 

      Consumer

    • D. 

      Specialized

  • 7. 
    What type of good is a computer that is used for personal home use?
    • A. 

      Capital

    • B. 

      Imported

    • C. 

      Consumer

    • D. 

      Specialized

  • 8. 
    What term refers to a person that owns a share of some business that produces goods?
    • A. 

      Distributor

    • B. 

      Capitalist

    • C. 

      Entrepreneur

    • D. 

      Supplier

  • 9. 
    Who is the person that risks his investment of time and money in the management of an economic enterprise?
    • A. 

      Distributor

    • B. 

      Capitalist

    • C. 

      Entrepreneur

    • D. 

      Supplier

  • 10. 
    Diligent work directed by ingenious intelligence allowed to develop under conditions of freedom is the true source of what?
    • A. 

      Wealth

    • B. 

      Value

    • C. 

      Prosperity

    • D. 

      Utility

  • 11. 
    All people are said to be producers, or people who use goods.
    • A. 

      True

    • B. 

      False

  • 12. 
    A mixed economy provides barely enough to keep a society alive.
    • A. 

      True

    • B. 

      False

  • 13. 
    State capitalism is a system in which the government controls most of the capital.
    • A. 

      True

    • B. 

      False

  • 14. 
    When a country finds ways to produce more goods from existing resources, the prosperity of the national economy increases.
    • A. 

      True

    • B. 

      False

  • 15. 
    The prosperity and efficiency of the free market economy is owed to its foundation of limited government, freedom of enterprise and competition, and natural resources.
    • A. 

      True

    • B. 

      False

  • 16. 
    The two entities that make the majority of the economic decisions in the free market are private households and private businesses.
    • A. 

      True

    • B. 

      False

  • 17. 
    Adam Smith stressed the importance of separating work into individualized tasks, an idea known as division of labor.
    • A. 

      True

    • B. 

      False

  • 18. 
    The difference in value of goods that a country sells abroad compared to those it purchases from other countries is purchasing balance.
    • A. 

      True

    • B. 

      False

  • 19. 
    According to economists, the factors of production are scarce.
    • A. 

      True

    • B. 

      False

  • 20. 
    What French phrase, often connected with economics, means "let things alone"?
  • 21. 
    Who were the French group of 18th-century economists who believed the market should be guided by the "rule of nature"?
  • 22. 
    Who was the founder of the Austrian school of economics?
  • 23. 
    What are taxes that governments apply only to imported goods?
  • 24. 
    Economics is the study of the choices that individuals and societies make concerning what activities involving goods? (3 separate words)
  • 25. 
    The value associated with any good is directly related to what TWO things? (two words)
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