Economics Test 1

Who wrote the wealth of nations?

The establishment of colonies to benefit a mother country?

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

What type of economy is directed by an "invisible hand"?

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

Who was the French group of 18th century economists, means "let things along"?

According to economists, the factors of production are scarce.

The amount of a good that is bought at a certain price under certain conditions.

What are taxes that governments apply only to imported goods?

Seeks to show the relationships among the various components of an economy

What type of economy is direct by government?

What are the four factors of production?

The value associated with any good is directly related to what two things?

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

An intangible item for which people expect to pay

When a country finds ways to make more goods from existing resources, the prosperity of the national economy increases.

Dilligent work by ingenious intelligence allowed to develop under conditions of freedom is the true source of what?

What French phrase, often connected with economics, means "let things along"?

What type of economy would a Communist - controlled country have?

The two entities that make economic decisions in the free market are private households and private businesses.

What type of economy is directed by customs and habits?

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

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

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

The study of national economies

The study of specific componments within a major economy is?

The value of goods that are sold abroad compared to those it purchases from other countries is purchasing balance.

The worth that consumers attach to a good

Who was the founder of the Austrian school of economics?

The prosperity of the free market economy is owed to limited gvment, freedom of competition, and nautural resources.

Who used his resources wisely to make gunpowder for President Jefferson?

What term refers to a person that owns a share of some business that produces goods?

What do some economists list as a fifth factor of production?

Economic system that aimed to accumulate stockpiles of gold and silver

Economics is the study of the choices that individuals and societies make concerning what activities involving goods?

What type of good is a computer that is used for personal home use?

Mechanism through which people exchange goods

Material items for which people expect to pay

Refers to the quantity of a good for sale at a certain price under certain conditions