Economic Systems
In which economic system all economic questions are answered by the government?
Command Economy
Who was the author of the Wealth of Nations and the father of economics?
Adam Smith
Which social class grew during the Industrial Revolution?
Middle Class
Laissez-faire means...
let it happen
Who is someone who makes goods or offers services to others?
Producer
In which system all economic questions are answered by the people?
Market Economy
Adam Smith believed global trade and competition was good because ...
(prompt: price and quality)
it kept prices low and increased the quality of goods
What is "the limited amount of resources available"?
scarcity
Who is someone who acquires goods and services for his or her own personal use?
consumer
How does mercantilism benefit the mother country?
The colonies provide everything to the mother country.
Most communist countries have this type of economic system.
command economy
Adam Smith's ideas on specialization and the division of labor lead to the creation of what?
a. assembly lines
b. fewer jobs in the economy
c. company sponsored retirement plans
assembly lines
Burger King and McDonalds keep their prices low because of
Competition
Which term means "a good to sold another country"?
Export
What do we call the land the mother country takes in a distant place and uses to make money for itself?
colony
Adam Smith attacked this economic theory that meant one's power was based on one's wealth...
Mercantilism
What is the greatest improvement in the productive powers of labor, according to Smith?
1. an educated workman making a product from start to finish
2. machinery
3. the division of labor
the division of labor
Smith believed that the economy operated according to three natural laws involving this concept...
self-interest
Kathy, Sue, and Christina own a bakery. Each day all three women spend hours baking cakes, decorating cakes, and packaging cakes. Which economic concept would help them become more efficient?
Specialization
Which area that Adam Smith believed the government should NOT be involved in?
business
What do we call the raw materials needed to make goods?
Natural resources
A favorable balance of trade is achieved when:
1. You import and export the same amount.
2. You export more than you import
3. You import more than you export
You export more than you import
The 3 most basic economic questions a community, society, or nation must answer.
1. What to produce?
2. How to produce?
3. For whom to produce?
What does the word "Industrialization" mean?
A change from an agricultural economy to a manufacturing economy
What was the impact of mercantilism on the mother country?
The Mother Country grew wealthy