checkup #1

Question 1

Method by which economic problems are solved in a society.

Answer 1

Economic system

Question 2

system in which economic decisions are made by government.

Answer 2

command system

Question 3

system in which decisions are made by historical tradition.

Answer 3

traditional system

Question 4

system in which decisions are made in response to supply and demand

Answer 4

market system

Question 5

What is economics?

Answer 5

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

Question 6

biblical term for contract?

Answer 6

covenant

Question 7

quantity of goods or services available for sale

Answer 7

supply

Question 8

desire of potential buyers for goods and services

Answer 8

demand

Question 9

a single business that is the only source for a product or service

Answer 9

monopoly

Question 10

union of several corporations who unite to eliminate competition and regulate prices

Answer 10

trust

Question 11

type of socialism that involves government ownership of businesses and industries

Answer 11

ownership socialism

Question 12

type of socialism that involves government control of wages and prices

Answer 12

control socialism

Question 13

excess of total revenue over total cost

Answer 13

profit

Question 14

excess of total cost over total revenue

Answer 14

loss

Question 15

means by which value is determined

Answer 15

economic calculation

Question 16

why is a study of economics important?

Answer 16

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

Question 17

what are limited while our wants are unlimited?

Answer 17

our “needs”

Question 18

what are some biblical principles that relate to economics?

Answer 18

1) ownership of private property
2) written and verbal contracts
3) the right of inheritance

Question 19

What are examples of the command system of economics at work within capitalist nations?

Answer 19

Government regulations

Question 20

What are the 4 “distinctives” of capitalism?

Answer 20

competition, individual initiative, freedom of choice, and private ownership of property.

Question 21

What helps keep prices down and improves quality?

Answer 21

competition

Question 22

who enjoys freedom of choice in a free-enterprise system?

Answer 22

workers, consumer, and entrepreneurs.

Question 23

in what kind of nation does the majority act through a parliament?

Answer 23

in a democratic socialistic nation

Question 24

in what kind of nation does a ruling minority control government?

Answer 24

in a totalitarian socialistic nation

Question 25

what do socialists believe?

Answer 25

that society holds all ownership rights

Question 26

what do capitalists believe?

Answer 26

man holds all ownership rights. (but what does the Bible really say? God does.)

Question 27

What is profit to a socialist?

Answer 27

the result of exploiting the worker.

Question 28

Most socialists believe in _______ of income.

Answer 28

equality.

Question 29

what determines the economic value of goods and services in a free-market economy?

Answer 29

the interplay of supply&demand...

Question 30

What is communism developed from?

Answer 30

the writings of Karl Marx

Question 31

how does communism attempt to end capitalism?

Answer 31

through revolution

Question 32

has communism succeeded in most countries that it's been tried in?

Answer 32

no.

Question 33

What does communism advocate without compensation?

Answer 33

expropriation of private property.

Question 34

what advocates a gradual transfer of the means of production to public ownership?

Answer 34

socialism

Question 35

What was socialism developed from?

Answer 35

the writings of Karl Marx

Question 36

What two things might socialism allow?

Answer 36

political freedom and free elections

Question 37

what form of government continues to exist in many nations?

Answer 37

socialism.