Exam 1 Flashcards
What Greek word does economics come from?
Oikonomos
What is the term used to describe economic effects external to the direct production of goods?
externalities
What does GDP stand for?
gross domestic product
What term is used to describe the analysis of how individual households and companies make decisions and how buyers and sellers interact in the market?
microeconomics
In the United States, what is money used as?
a medium of exchange
What forms did money once take?
gold, silver, and paper certificates?
What was the prevailing economic philosophy at the time of publication of the wealth of nations?
mercantilism
What book by Karl Marx and George F. W. Engel was a statement of revolutionary principles for a labor organization?
The Road to Serfdom
Who wrote Principles of Economics?
Carl Menger
What did the conference at Bretton Woods, New Hampshire lead to the creation?
- the General Agreement on Tariffs and Trade
- the International Monetary Fund
- the World Bank
In the Israelites year of jubilee, what happened to the land that a person had acquired since the previous year of jubilee?
It reverted to the family of the original owner
Who owned all the land of Israel?
God
Who conquered the southern kingdom of Judah and carried many of the people away to exile?
Babylon
Proverbs 23:4-5 compares wealth to the fleeting nature of what?
an eagle
According to Proverbs 22:2, the rich and the poor share what common bond?
the Lord made them all
Why does the writer of Proverbs 30:7-9 not want riches?
so he will not deny the Lord
Psalm 15 tells us that he who does not, among other things, take a bribe against the innocent will never what?
shaken
Besides the kingdom of God, what subject did Jesus talk about the most?
money
In Jesus parable about the rich fool, He said the fool had stored up tr3easeure for himself but he was not
rich toward God
Paul commanded a change in the behavior of the believers in Thessalonica whom he had heard were living what kind of life?
undisciplined
Who are two early Christians who are known to have been somewhat wealthy?
Cornelius and Lydia
Monks committed themselves to living a life of voluntary poverty and devoted themselves to:
prayer and fasting
As a result of their successful New England colonies, what group had significant influence in America and in the thinking of American Christians regarding faith and money?
Puritans
Who wrote the Protestant Ethic and the Spirit of Capitalism?
Max Weber
What part of the world in particular has developed liberation theology?
Latin America
According to Scripture we will have plenty if we are:
generous
In Luke 12:15, Jesus warned HIs listeners to be on their guard against every form of what?
greed
To what did Paul compare greed in Colossians 3:5?
idolatry
Paul said that godliness is a means of great gain when accompanied by what?
contentment
The economic motivation behind the American colonies break with Great Britian included the colonists anger at the British policy of:
imposing taxes on the colonies
Under the Articles of Confederation, the United States…
had no national currency
What did the constitution give congress the power to do?
regulate interstate commerce
What did the plan put forth by Alexander Hamilton include a proposal to do?
create a national bank
What was one factor that brought about the War of 1812?
British interference with American shipping
Afte3r Andrew Jackson vetoed the renewal of the Banke of the United States, where did the Federal funds go?
they were deposited to several state banks
What was the first big business that developed after the Civil War?
railroads
What was created by Congress in 1913 to serve as a central bank?
The Federal Reserve System
What is generally credited with bringing the United States out of the Great Depression?
production related to World War 2
What was a major economic issue during the 1970s?
inflation
Making choices is:
A necessity, responsibility and a blessing
making bad choices now makes good choices later:
more difficult
Why do we face economic choices?
because of limited resources
What is Marginal benefit?
The change in total benefit that results from an action
What are production resources?
the factors of production
What is the production possibilities frontier?
the maximum production an economy can have given its production resources
What is a rebate an example of?
an incentive
What is consumer choice effected by?
what the consumer wants and what the consumer can afford
Capitalism and socialism differ in terms of:
who makes economic decisions
Public choice theory emphasizes the role of decision making that is played by:
self interest
Who is often called the father of modern economics?
Adam Smith
What country was Adam Smith born?
Scotland
what book by Adam Smith was published in 1776?
The Wealth of the nations
How did Smith challenge the prevailing view of how nations build and aquire wealth?
he said that the wealth came from the labor that the citizens provided
What 2 circumstances does Smith say regulate the proportion of what a nation produces to the number of those who consume it?
The skill, dexterity, and judgment with which its labor is applied and the proportion between the number of those who are employed in useful labor and those who are not employed.
What does Smith say brought about the biggest improvement in the productive powers of labor?
the division of labor
Smith says that we obtain what we need not from the ___ of merchants, but from their regard to their own ___.
benevolence, interest
Where was Karl Marx born?
Trier, Prussia
What 2 classes of society did Marx acknowledge?
Proletariat (working class) and bourgeoisie (ownership class)
Describe Marx’s theory for the establishment of a socialist state.
The state would be run by the intellectually elite on behalf of the working class. The workers would own the means of production and share in the profit.
Milton Friedman believed that the Great Depression was primarily caused by what?
failure of the Federal Reserve System to maintain an adequate supply of money to help the economy grow
Who is considered the Father of the modern study of macroeconomics?
John Maynard Keynes
What work popularized the term “conventional wisdom”?
The Affluent Society by John Kenneth Galbraith
Economist and socialist Max Weber was from what country?
Germany
How did Max Weber define capitalism?
Economic activity that expects a profit through peaceful, voluntary, and mutually beneficial exchanges
What were the 3 main elements of Alexander Hamiltons fiscal plan?
- the national government took the debts of the states and continental congress and government assistance for the creation of a manufacturing economy
- to impose tariffs on imports and ban certain imports
- the creation of a national bank
What did the Federal government do to help pay off debt after the war of 1812?
sold western land
What were some of the factors of the panic of 1819?
- The bank of the United States was poorly run
- they issued fewer loans
- they demanded hard money of the State bank notes it received
- demand for American cotton declined
- slowdown in industrial output
- many defaults on loans
What was a major economic problem during the 1970?
inflation
What is economic efficiency?
The goal of having the people in an economy being as productive as possible
What is economic equity?
the goal of having goods and services shared as equally as possible among the people in a society
What is economic stability?
protection from fluctuation in economic activity from serious loss
What is economic security?
being sure that everyone has what they need (jobs, healthcare, necessities) and cannot fall too far
What are production resources?
the elements that producers use to create goods and services
What are 3 categories of production resources?
- material resources
- human resources
- and capital
what is economics?
a social science concerned chiefly with description and analysis of the production, distribution, and consumption of goods and services
What are some types of economies?
- barter economy - a economy with no money
- market, free market, or capitalist economy - means of production is owned by private individuals
- command economy/ socialist economy - authority dictates what is done
