Economics Topic 2.1 - 4 Quiz

Question 1

Income people receive for supplying the factors of production

Accepted Answer

Factor Payments

Question 2

Letter I represents _____ paid to the government

Accepted Answer

Taxes

Question 3

An arrangement that allows buyers and sellers to exchange things

Accepted Answer

Market

Question 4

A ________ economy relies on custom, habit, or ritual to answer economic questions

Accepted Answer

Traditional

Question 5

Economic _____ means making the most of the resources a society has

Accepted Answer

Efficiency

Question 6

Name of the phenomenon Adam Smith said regulated the marketplace

Accepted Answer

Invisble Hand

Question 7

Concentration of productive efforts on a limited number of activities

Accepted Answer

Specialization

Question 8

In his book, Adam Smith described how the _________ functions

Accepted Answer

Free Market

Question 9

Societies pursue other economic ________ such as environmental protection

Accepted Answer

Goals

Question 10

The method used by society to produce and distribute goods and services

Accepted Answer

Economic System

Question 11

Letter H represents government ...

Accepted Answer

Expenditures

Question 12

Letter C represents the ...

Accepted Answer

Factor Market

Question 13

Letter D represents the ...

Accepted Answer

Product Market

Question 14

A fair distribution of wealth means economic ________

Accepted Answer

Equity

Question 15

Innovation leads to economic ________ which leads to a higher standard of living

Accepted Answer

Growth

Question 16

The struggle among producers for the dollars of consumers is called ...

Accepted Answer

Competiton

Question 17

Letter A represents ...

Accepted Answer

Households

Question 18

Letter F represents ________ flow

Accepted Answer

Physical Flow

Question 19

The level of economic prosperity of a nation's economy

Accepted Answer

Standard of Living

Question 20

Command economies are also known as ________ economies

Accepted Answer

Centrally Planned

Question 21

Lack of government intervention in production leads to economic ________

Accepted Answer

Freedom

Question 22

Adam Smith wrote "An inquiry into the nature and cause of the ... "

Accepted Answer

Wealth of Nations

Question 23

Letter E represents ________ flow

Accepted Answer

Monetary Flow

Question 24

Policy which means "let them do (as they please)"

Accepted Answer

Laissez-faire

Question 25

Letter B represents ...

Accepted Answer

Firms

Question 26

When consumers decide what gets produced, it is called consumer _________

Accepted Answer

Sovereignty

Question 27

Letter G represents the ...

Accepted Answer

Government

Question 28

Letter J represents government ...

Accepted Answer

Purchases

Question 29

Smith says it is the _________ of every person that is the motivating force of the market

Accepted Answer

self interest

Question 30

Economic ________ provides assurances that goods and services will be available

Accepted Answer

Security

Question 31

Scottish social philosopher who wrote a book about economics in 1776

Accepted Answer

Adam Smith

Question 32

In a ________ economy, decisions are made by individuals and are based on trade

Accepted Answer

Free Market

Question 33

Government programs that protect people experiencing poor economic conditions

Accepted Answer

Safety Net

Question 34

Finally, Adam Smith called for restriction of the government in the _________

Accepted Answer

Economy

Question 35

Most modern economies are ________ : a combination of the other three types

Accepted Answer

Mixed

Economics Topic 2.1 - 4 Quiz

Questions 35

Economics Topic 2.1 - 4 Quiz

Questions 35