1139 Q&B Flashcards

1
Q

A study of economics is important because ____

A

you have a say in your economy through your vote
God expects you to be a wise steward
you are involved in economics when you shop and work

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Our ______ are limited but our ____________

A

resources

wants are unlimited

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Any economic theory is incomplete without a ___________

A

Biblical foundation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Biblical principles that relate to economics include

A

ownership of private property
written and verbal contracts
the right of inheritance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Government regulations are examples of the _____________________ of economics at work within capitalistic nations

A

command system

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

The distinctives of capitalism include _______

A

competition
individual initiative
freedom of choice
private ownership of property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

___________ helps keep prices down and improves quality

A

Competition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

If demand is greater than supply, _______

A

prices are usually higher

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

In a free-enterprise system, _____ enjoy freedom of choice

A

workers
consumers
entrepreneurs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

In a ________________ the majority acts through a parliament

A

democratic socialistic nation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

In a ________________ a ruling minority controls the government

A

totalitarian socialistic nation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Socialists believe that _____ holds all ownership rights, capitalists believe that ______ hold these rights, but the Bible teaches that God holds them

A

society

individuals

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

To a socialist, profit is a result of __________

A

exploiting the workers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Most socialists believe in _______

A

equality of income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

In a free-market economy, the interplay of ___________ determines the economic value of goods and sevices

A

supply and demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

The goal of _________ was to increase a nation’s supply of precious metals by encouraging the sale of products to other nations in exchange for gold while restricting the purchase of products from other nations in exchange for gold.

A

mercantilism

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

According to Adam Smith, the ____________ leads to greater production because each person performs only one task

A

division of labor

18
Q

The entire society becomes more __________ because of the _____________

A

prosperous

division of labor

19
Q

The value of any commodity used for exchange, Adam Smith said, is equal to the quantity of _____________

A

labor that it purchases

20
Q

Smith believed that only _____ was stable because the values of other alternatives varied

21
Q

Business transactions are usually in terms of ______

22
Q

The cost of production includes _____, ______, and ________

A

rent
wages
profit

23
Q

If supply is greater than effectual demand, market price will _________

24
Q

If supply is less than effectual demand, market price will ______

25
The prices of all commodities continually gravitate toward the _________
natural price
26
An economic theory is also called an ___________-
economic model
27
________________________ wrote Communist Manifesto
Friedrich Engels | Karl Marx
28
Although Mark accepted Smith's ___________, he greatly exaggerated the _______________ in the process of production
labor theory of value | importance of labor
29
Marx believed that capitalism allowed the bourgeoisie to exploit the __________
worker
30
He believed that all the capitalist's profit was a result of ______________
the exploitation of labor
31
What is economics?
Economics is the systematic study of the production, distribution, and consumption of goods and services.
32
The traditional economic system plays little ____________
part in the modern world
33
The command system includes, __________
socialism, communism, and fascism
34
Ownership socialism
may deny private ownership of all but the most personal property may involve government ownership of all business and industries severely limits individual free choice
35
control socialism
involves government control of prices and wages severely limits individual free choice describes Hitler's totalitarian regime
36
Communism
attempts to end capitalism by revolution is totalitarian has failed in most nations where it has been tried
37
Socialism
attempts to end capitalism through the ballot box continues to exist in many nations may allow political freedom in free elections
38
J.M. Keynes believed that government should encourage _________
full employment
39
Keynes' measure actually produces extensive ________
inflation
40
The two explanations for inflation are ______________ and the _____________
the special-factor explanation | money explanation
41
The monetary explanation for inflation is that
inflation is caused by the decreasing value of money | prices increase when the quantity of money increases