1139 Q&B

Question 1

A study of economics is important because ____

Answer 1

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

Question 2

Our ______ are limited but our ____________

Answer 2

resources

wants are unlimited

Question 3

Any economic theory is incomplete without a ___________

Answer 3

Biblical foundation

Question 4

Biblical principles that relate to economics include

Answer 4

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

Question 5

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

Answer 5

command system

Question 6

The distinctives of capitalism include _______

Answer 6

competition
individual initiative
freedom of choice
private ownership of property

Question 7

___________ helps keep prices down and improves quality

Answer 7

Competition

Question 8

If demand is greater than supply, _______

Answer 8

prices are usually higher

Question 9

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

Answer 9

workers
consumers
entrepreneurs

Question 10

In a ________________ the majority acts through a parliament

Answer 10

democratic socialistic nation

Question 11

In a ________________ a ruling minority controls the government

Answer 11

totalitarian socialistic nation

Question 12

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

Answer 12

society

individuals

Question 13

To a socialist, profit is a result of __________

Answer 13

exploiting the workers

Question 14

Most socialists believe in _______

Answer 14

equality of income

Question 15

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

Answer 15

supply and demand

Question 16

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.

Answer 16

mercantilism

Question 17

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

Answer 17

division of labor

Question 18

The entire society becomes more __________ because of the _____________

Answer 18

prosperous

division of labor

Question 19

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

Answer 19

labor that it purchases

Question 20

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

Answer 20

labor

Question 21

Business transactions are usually in terms of ______

Answer 21

money

Question 22

The cost of production includes _____, ______, and ________

Answer 22

rent
wages
profit

Question 23

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

Answer 23

fall

Question 24

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

Answer 24

rise

Question 25

The prices of all commodities continually gravitate toward the _________

Answer 25

natural price

Question 26

An economic theory is also called an ___________-

Answer 26

economic model

Question 27

________________________ wrote Communist Manifesto

Answer 27

Friedrich Engels

Karl Marx

Question 28

Although Mark accepted Smith’s ___________, he greatly exaggerated the _______________ in the process of production

Answer 28

labor theory of value

importance of labor

Question 29

Marx believed that capitalism allowed the bourgeoisie to exploit the __________

Answer 29

worker

Question 30

He believed that all the capitalist’s profit was a result of ______________

Answer 30

the exploitation of labor

Question 31

What is economics?

Answer 31

Economics is the systematic study of the production, distribution, and consumption of goods and services.

Question 32

The traditional economic system plays little ____________

Answer 32

part in the modern world

Question 33

The command system includes, __________

Answer 33

socialism, communism, and fascism

Question 34

Ownership socialism

Answer 34

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

Question 35

control socialism

Answer 35

involves government control of prices and wages
severely limits individual free choice
describes Hitler’s totalitarian regime

Question 36

Communism

Answer 36

attempts to end capitalism by revolution
is totalitarian
has failed in most nations where it has been tried

Question 37

Socialism

Answer 37

attempts to end capitalism through the ballot box
continues to exist in many nations
may allow political freedom in free elections

Question 38

J.M. Keynes believed that government should encourage _________

Answer 38

full employment

Question 39

Keynes’ measure actually produces extensive ________

Answer 39

inflation

Question 40

The two explanations for inflation are ______________ and the _____________

Answer 40

the special-factor explanation

money explanation

Question 41

The monetary explanation for inflation is that

Answer 41

inflation is caused by the decreasing value of money

prices increase when the quantity of money increases