Unit 1
What is the meaning of the Greek word oikonomos from which we get the word economics?
Steward (5)
1. A basic principle of economics is that people have to make choices about _____________?
D. Scarce or limited resources (39)
What do you call a non-precious metal like copper or nickel?
Base metal
10. Jesus taught that our lives do not consist of our possessions even when we have what?
c. abundance (82)
What is welfare?
A government program that gives taxpayer money to poor people.
In previous generations, the word economy primarily referred to the management of what?
A household (6)
3. In addition to wisdom, what did the Lord give Solomon?
a. Riches and honor.
A coin made of layers of different metals is called what?
Clad (coin)
4. What was the richest institution in Europe during the Middle Ages?
b. Roman Catholic Church (71)
What is a subsidy?
A government that gives away tax money to large companies and industries.
Getting goods and services to the public is called what?
Distribution (7)
6. Proverbs 13:18 teaches that the person who neglects discipline will experience ___________________.
j. poverty and shame.
Juris Naturalism
9. The apostle Paul equates greed with what?
Idolatry (83)
Clipping coins, debasing coins, and printing dollars not backed by the gold or silver standard are all methods of what?
Counterfeiting
Individuals, households, businesses, and governments purchasing and using goods and services is called what?
Consumption (7)
8. In his prayer in Proverbs 30:7-9, the writer asks God to give him ______________________.
c. neither poverty nor riches.
On what school (or schools) of economic theory is the book based?
Austrian and Monetarist schools of economic theory.
3. What were communities where people wanted to escape the influence and defilement of the world called?
True or False: In 1975, a half-dollar was still 90% silver.
False. In 1964, it was 90% silver, but five years later, by 1969, it was already down to 40%.
What is Economics?
1) The study and analysis of how people, businesses, and governments make choices about the production, distribution, and consumption of goods and wealth.
2) Unlimited Wants vs. Finite Resources
3) The Rule Book
2. The conditions in Egypt during the famine mentioned in Genesis 42 and 43 illustrate what economic principle?
i. Supply and Demand
True or False: By 1972, all silver had been removed from U.S. dimes and quarters, and all gold backing was removed from the U.S. dollar.
True. Silver removed in 1965 and gold backing in 1971.
8. In addition to loving kindness and walking humbly with Him, what does Micah 6:8 say that God wants us to do?
f. justice (80)
Today's dimes, quarters, and half dollars are reeded. Why are they reeded if they contain no silver?
To give the illusion that they are still precious.
On what principle does a market operate?
Supply and Demand (14)
g. vine and fig tree.
Fill in the blanks: The difference between famous economists Smith, Keynes, and Friedman is that, Smith "_______ the ______," Keynes "______________ the ____________," and Friedman "_________________the __________________."
Smith "Built the House," Keynes "designed the renovations," and Friedman "controlled the thermostat."
2. The fact that their sharing was not compulsory made the sharing by early believers different from what?
h. communism (65)
What are the notches on the edge of a coin called?
Reeding (think of "reeds" on the edges)
Where was Karl Marx born?
Prussia (26)
9. Jesus said people could not serve the two masters of _____________________.
h. God and wealth.
What is the study that focuses on "The Big Picture?" It covers the entire country or world, addresses issues like inflation, unemployment, GDP, and government policies.
MACROeconomics
7. A focus on social and economic causes in the name of Christ came to be called what?
i. social gospel (73)
What is it called when the edges of a coin are shaved in order to get some of the precious metal from the coin?
Clipping
The exchange of goods or services in which people determine equivalent values is called what?
Bartering (15)
5. Proverbs 22:4 teaches that in addition to riches, the reward of humility and the fear of the Lord are ___________________.
b. honor and life.
What is the study that focuses on "Me, Myself, and I - The Little Guy" called? It deals with how individuals, households, and small businesses impact the economy with our choices.
MICROeconomics
The first believers in Jerusalem saw their possessions as common what?
d. property (65)
What law says that bad money drives good money out of circulation?
Gresham's Law
What is the Economy?
1) The actual system for producing and distributing wealth.
2) The Game
7. In Proverbs 6, the writer tells his son not even to do what before he delivers himself from being surety for his neighbor?
f. sleep or slumber.
This term describes the value of what you give up when you make a choice, like spending time on one thing over another.
Opportunity Cost
6. What theology, which developed especially in Latin America, supports liberating the poor from their poverty by opposing those seen as oppressing the poor?
e. liberation (74)
After the American Revolution, how did the Federal government intend to raise the revenue in order to pay off debt?
Through import tariffs and excise taxes. *This administration is a big fan of import tariffs. We will learn more about these this semester!
When people realize that they are better off concentrating on certain skills and depending on others for other goods and services, they begin to experience the principle of what?
Comparative Advantage (12)
10. Instead of worrying about food and clothing, Jesus told people to seek what?
e. God's kingdom and righteousness
"A person, business, or nation must produce enough goods and services to meet their needs and wants. Spending more than we make leads to debt or shortages. Growth and stability come from producing value before consuming resources." This describes what principle?
Limits on Consumption.
5. Max Weber said that peaceful, voluntary, and mutually beneficial exchanges defined what?
j. capitalism (74)
What is it called when prices increase rising at 10 to 99 percent per year due to inflation?
Double-Digit Inflation