Abeka Economics Test 1

Question 1

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

Accepted Answer

command economy

Question 2

The difference in value of goods that a country sells abroad compared to those it purchases from other countries is ___

Accepted Answer

trade balance

Question 3

the establishment of colonies to benefit a mother country

Accepted Answer

imperialism

Question 4

what is the French phrase, often connected with economics, means "let things alone"?

Accepted Answer

Laissez-faire

Question 5

a system in which the government controls most of the capital?

Accepted Answer

state capitalism

Question 6

Who wrote "The Wealth of Nations"?

Accepted Answer

Adam Smith

Question 7

the study of national economies

Accepted Answer

macroeconomics

Question 8

According to economists, the factors of productions are ___.

Accepted Answer

scarce

Question 9

What type of economy is directed by customs and habits?

Accepted Answer

traditional economy

Question 10

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

Accepted Answer

free market economy

Question 11

an economy that provides barely enough to keep a society alive?

Accepted Answer

subsistence economy

Question 12

All people are said to be ___, or people who use goods

Accepted Answer

consumers

Question 13

What type of economy is directed by government?

Accepted Answer

command economy

Question 14

Who were the French group of 18th century economists who believed the market should be guided by "the rule of nature"?

Accepted Answer

Physiocrats

Question 15

What are taxes that governments apply only to imported goods?

Accepted Answer

tariffs

Question 16

material items for which people expect to pay

Accepted Answer

goods

Question 17

who was the founder of the Austrian school of economics?

Accepted Answer

Carl Menger

Question 18

the worth that consumers attach to a good

Accepted Answer

value

Question 19

the study of specific components within a major economy

Accepted Answer

microeconomics

Question 20

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

Accepted Answer

entrepreneur

Question 21

seeks to show the relationships among various components of an economy

Accepted Answer

economic model

Question 22

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

Accepted Answer

capitalist

Question 23

an intangible item for which people expect to pay

Accepted Answer

service

Question 24

an economic system which aimed to accumulate stockpiles of gold and silver

Accepted Answer

mercantilism

Question 25

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

Accepted Answer

prosperity

Question 26

a mechanism through which people exchange goods

Accepted Answer

market

Question 27

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

Accepted Answer

supply

Question 28

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

Accepted Answer

consumer

Question 29

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

Accepted Answer

demand

Question 30

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

Accepted Answer

division of labor

Abeka Economics Test 1

Questions 30

Abeka Economics Test 1

Questions 30