Short Answer

Question 1

What was the major economic goal of European countries from the 1500’s to the 1700’s

Answer 1

To increase their holdings for Gold and silver

Question 2

Name 3 economic systems, and for each one answer who owns the factors of production? And who answered the 3 Econ questions?

Answer 2

1. Radical capitalism- individuals, individuals
2. Classic liberal capitalism- individuals with minimal contorol, individuals with minimal government ownership
3. State capitalism- individuals with moderate government control, individuals with moderate decision making

Question 3

According to Adam smith, what are the two keys to the economic prosperity of a nation?

Answer 3

Limited government, personal responsibility

Question 4

Name two Econ principles of capitalism supported by scripture and give a reference for each.

Answer 4

Private ownership of property, acts 5:4

Principle of individuals accountably Luke 12: 47-48

Question 5

According to Adam smith what were two flaws in mercantilist economic policy?

Answer 5

1. Nation would exploit it’s resources to accumulate Gold and silver at the expense of its own people
2. The aggressive actions of the mercantilist nation would create enemy’s

Question 6

What Are three advantages of a sole proprietorship ?

Answer 6

Freedom to enter and exit freely
Freedom from outside control
Freedom from paying excessive taxes

Question 7

What are the disadvantage of a partnership?

Answer 7

Unlimited personal financial responsibility
Uncertain life
Potential conflicts between partners

Question 8

What are three advantages of incorporation?

Answer 8

Limited personal finical liability
Experienced management and specialized employees
Continues life

Question 9

An LLC combines the benefits of witch 2 forms of bosses ownership?

Answer 9

Partnership and corporation

Question 10

According to the law what is a corporation, and what are it’s important properties?

Answer 10

Artificial being, invisible, intangible, and existing only in the contemplation of the law, it’s important properties are immortality and individuality

Question 11

List three reasons that stock markets are important to the economy?

Answer 11

Provides a place were corporations can raise needed review
Provides opportunity for individuals to invest
Provides information on the state of the nations economy

Question 12

Identity each of the following a being associated with common stock or perfected stock:
A. Share holders revive dividends first
B. Owners have voting rights
C. Considered true ownership

Answer 12

A. Preferred
B. Common
C. Common

Question 13

When and why was the score founded?

Answer 13

Following the Great Depression, by regulating brokers and exchanges and ensuring brokers provide accurate info to the public

Question 14

In what two ways is a stock market like other markets?

Answer 14

Location were those who wish to buy and sell come together

Price reflects what the consumer is willing to bye

Question 15

Owning shares of stock not only makes a person a partial owner of a corporation but also gives that person what other opportunities?

Answer 15

To vote on business decisions on the board

Question 16

From a economists point of view what is a market?

Answer 16

Arrangements people have developed for trading with one another

Question 17

What is the most prevalent form of competition in America today?

Answer 17

Imperfect competition

Question 18

List the four different characteristics of market organization.

Answer 18

Number of firms in the industry
Differences in the products sold
Control of price
Ease of entering and entering the market

Question 19

Why is it extremely difficult for a monopolistic firm to exit an industry?

Answer 19

The firm is the soul provider of a product or service

Question 20

What is an industry?

Answer 20

Group of business that sell a similar product, sell to specific clients, produce this product in action