Test 1 Ch. 1-3 - Economics: Work & Prosperity

Question 1

What did Adam Smith write?

Accepted Answer

The Wealth of Nations

Question 2

What are taxes that governments apply only to imported goods?

Accepted Answer

tariffs

Question 3

material items for which people expect to pay

Accepted Answer

consumer goods

Question 4

mechanism through which people exchange goods

Accepted Answer

market

Question 5

What type of economy is directed by government?

Accepted Answer

command economy

Question 6

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

Accepted Answer

laissez-faire

Question 7

the French group of economists who believed the market should be guided by "the rule by nature"

Accepted Answer

physiocrats

Question 8

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

Accepted Answer

E. I. du Pont

Question 9

Who wrote The Wealth of Nations?

Accepted Answer

Adam Smith

Question 10

Which is NOT a factor of production

Accepted Answer

supply

Question 11

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

Accepted Answer

consumers

Question 12

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

Accepted Answer

subsistence

Question 13

Adam Smith stressed the importance of separating work into individualized tasks -

Accepted Answer

division of labor

Question 14

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

Accepted Answer

free market economy

Question 15

What type of economy is directed by customs and habits?

Accepted Answer

traditional economy

Question 16

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

Accepted Answer

consumer

Question 17

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

Accepted Answer

demand

Question 18

the study of specific components within a major economy

Accepted Answer

microeconomics

Question 19

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

Accepted Answer

command economy

Question 20

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

Accepted Answer

state

Question 21

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

Accepted Answer

scarcity, utility

Question 22

Who was the founder of the Austrian school of economics?

Accepted Answer

Carl Menger

Question 23

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

Accepted Answer

supply

Question 24

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

Accepted Answer

capitalist

Question 25

Who risks his investment of time and money int he management of an economic enterprise?

Accepted Answer

entrepreneur

Question 26

Diligent work directed by ingenious intelligence allowed to develop under conditions of freedom

Accepted Answer

prosperity

Question 27

the worth that consumers attach to a good

Accepted Answer

value

Question 28

the establishment of colonies to benefit a mother country

Accepted Answer

imperialism

Question 29

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

Accepted Answer

information

Question 30

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

Accepted Answer

capital

Test 1 Ch. 1-3 - Economics: Work & Prosperity

Questions 30

Test 1 Ch. 1-3 - Economics: Work & Prosperity

Questions 30