1139 Q&B Flashcards
A study of economics is important because ____
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
Our ______ are limited but our ____________
resources
wants are unlimited
Any economic theory is incomplete without a ___________
Biblical foundation
Biblical principles that relate to economics include
ownership of private property
written and verbal contracts
the right of inheritance
Government regulations are examples of the _____________________ of economics at work within capitalistic nations
command system
The distinctives of capitalism include _______
competition
individual initiative
freedom of choice
private ownership of property
___________ helps keep prices down and improves quality
Competition
If demand is greater than supply, _______
prices are usually higher
In a free-enterprise system, _____ enjoy freedom of choice
workers
consumers
entrepreneurs
In a ________________ the majority acts through a parliament
democratic socialistic nation
In a ________________ a ruling minority controls the government
totalitarian socialistic nation
Socialists believe that _____ holds all ownership rights, capitalists believe that ______ hold these rights, but the Bible teaches that God holds them
society
individuals
To a socialist, profit is a result of __________
exploiting the workers
Most socialists believe in _______
equality of income
In a free-market economy, the interplay of ___________ determines the economic value of goods and sevices
supply and demand
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.
mercantilism
According to Adam Smith, the ____________ leads to greater production because each person performs only one task
division of labor
The entire society becomes more __________ because of the _____________
prosperous
division of labor
The value of any commodity used for exchange, Adam Smith said, is equal to the quantity of _____________
labor that it purchases
Smith believed that only _____ was stable because the values of other alternatives varied
labor
Business transactions are usually in terms of ______
money
The cost of production includes _____, ______, and ________
rent
wages
profit
If supply is greater than effectual demand, market price will _________
fall
If supply is less than effectual demand, market price will ______
rise
The prices of all commodities continually gravitate toward the _________
natural price
An economic theory is also called an ___________-
economic model
________________________ wrote Communist Manifesto
Friedrich Engels
Karl Marx
Although Mark accepted Smith’s ___________, he greatly exaggerated the _______________ in the process of production
labor theory of value
importance of labor
Marx believed that capitalism allowed the bourgeoisie to exploit the __________
worker
He believed that all the capitalist’s profit was a result of ______________
the exploitation of labor
What is economics?
Economics is the systematic study of the production, distribution, and consumption of goods and services.
The traditional economic system plays little ____________
part in the modern world
The command system includes, __________
socialism, communism, and fascism
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
control socialism
involves government control of prices and wages
severely limits individual free choice
describes Hitler’s totalitarian regime
Communism
attempts to end capitalism by revolution
is totalitarian
has failed in most nations where it has been tried
Socialism
attempts to end capitalism through the ballot box
continues to exist in many nations
may allow political freedom in free elections
J.M. Keynes believed that government should encourage _________
full employment
Keynes’ measure actually produces extensive ________
inflation
The two explanations for inflation are ______________ and the _____________
the special-factor explanation
money explanation
The monetary explanation for inflation is that
inflation is caused by the decreasing value of money
prices increase when the quantity of money increases
