Chapter 1-2 Test Flashcards
All goods have to be ______ ___?
Worked for
What is the study of material life?
Economics
Why study economics?
- God is the ultimate source of wealth
- There is no culture without economy
Most people are what?
Producers
All people are what?
Consumers
What is the study of national and international economics and how these major economies are affected by large-scale choices and public policies?
Macroeconomics
What is the study of specific components within a major economy and how choices made by individual households and businesses affect the economy?
Microeconomics
We are always going to have more _____ than _____?
Wants, needs
Who wrote The Wealth of Nations?
Adam Smith
What two books did Adam Smith write?
Wealth of Nations and Theory of Moral Sentiment
What is building up a treasury of gold and silver?
Mercantilism
What is anything used in production and distribution of goods and services? AKA investment goods, or capital (Farm tools, factories, and freight trains)
Capital goods
What are things produced for direct use by consumers? Made directly to satisfy people’s wants. (Food, clothing, shelter)
Consumer goods
What are the four factors of production?
- natural resources
- capital
- labor
- entrepreneurship
The satisfaction of human wants always requires ______?
Effort
