Pgs 17-19
To produce goods, it is necessary to combine the four factors or what?
Production
What did the division of labor separate?
The work into individualized tasks
To the economist, what does prosperity mean?
Economic success
What is a traditional economy?
A system in which decisions involving the production, distribution, and consumption of goods are based upon custom, heredity, and caste.
NON-BOLD: Which Bible verse says, "Wealth gotten by vanity shall be diminished: but he that gathereth by labour shall increase."
Proverbs 13:11
Go to "Classical economics" to find this answer. There were theories developed by economists of the 19th and early 20th centuries that stated that the free market was what?
The best possible economic system
Leading men of the time promptly praised what?
The Wealth of Nations
Give me the example of "Produce more goods from resources"
A simple instance of this method would be turning out an increased amount of cotton goods from an existing cotton mill by using the looms (capital goods) more hours of the day, and thus producing more cotton cloth (consumer goods) from existing machines.
What are the four main categories of the factors of production?
1) Natural resources
2) Labor
3) Capital
4) Entrepreneurship
In economics, the term labor refers to what?
Any work, whether physical or mental, that contributes to the production of goods and services.
What is trade balance?
The difference in value of the goods that a country sells abroad compared to those it purchases from other countries.
NON-BOLD: Even modern Marxist economists have had to acknowledge that who was a great thinker?
Adam Smith
What is the definition of labor?
Human activity which results in the creation of goods and services.
What is the true source of prosperity?
Diligent work directed by ingenious intelligence allowed to develop under conditions of freedom
Natural resources include which two things mentioned in your book?
Land and other raw materials
Economies that practice the effective division of labor require some form of money to make what?
The exchange of goods easier
Who was the first secretary of treasury of the United States?
Alexander Hamilton
False. Page 24, bottom right.
What is command/directed economy?
A system in which a centralized authority determines the production and distribution of goods and services as well as things like savings, investments, and prices.
NON-BOLD: In a totalitarian state with a command economy, men and women are what?
Assigned where to work by a political authority, based on the totalist state's needs; wages are also fixed by the government.
What are they laws of economics?
The general rules or principles guiding the production, distribution, and consumption of goods.
What is "specialization?"
The division of tasks among workers allowed the production of goods by people doing the jobs they did best.
Tell me what your book says about "Find a new resource to satisfy existing wants."
The invention of the new formulas for making plastic products that could be substituted for certain scarce metals is an illustration of this way of increasing wealth
What is free enterprise economy?
A system in which people are free to make their own economic choices.
Substantial rewards for good work