question

unemployment rates rise

answer

which of the following does NOT immediately result from fluctuations between inflation and deflation: a. people cannot make economic forecasts b. a "wait and see" attitude prevails c. society's economic output slows d. unemployment rates rise

question

how to best achieve its economic goals

answer

Which of the following is the primary economic concern of a society: a. how to balance the public budget b. how to best achieve its economic goals c. how to sustain economic growth d. how to acquire more economic resources

question

the Industrial Revolution

answer

Which of the following best qualifies as a period of intensive growth: a. America's westward expansion b. European colonialism c. the Industrial Revolution d. the Louisiana Purchase

question

businesses that produce consumer goods cause the production of capital goods to decrease, and vice versa

answer

What is meant by the consumer goods/capital goods tradeoff?

question

automobile

answer

Which of the following is a consumer good: a. automobile b. tractor c. printing press d. welding machine

question

plow

answer

which of the following in a capital good: a. book b. house c. medicine d. plow

question

each individual decides the consumer goods/capital goods tradeoff

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what is the market solution to the output question?

question

it regulates the flow of money from households to businesses via financial markets

answer

What is the central function performed by the market interest rate?

question

consumer savings

answer

from what source do firms get the funds to purchase more real capital?

question

policymakers choose the labor/capital ratio

answer

what is the command solution to the input question?

question

lowering production costs

answer

the primary goal that drives the market solution to the input question is

question

egalitarian fairness

answer

what viewpoint states that each person in a nation has a right to part of the nation's wealth simply by being part of the human race?

question

workfare

answer

the public provision of further training or education for the unemployed while they search for jobs is often known as

question

Karl Marx

answer

Who is the Father of Communism?

question

it regards class conflict as unsolvable

answer

which of the following is NOT true of communism as a philosophy: a. it regards class conflict as unsolvable b. it can easily be exploited by ambitious men c. it seeks to perfect society by human effort d. it was initially widely rejected in Europe

question

1. healthy growth of the economy 2. fair income distribution 3. lower unemployment 4. stable price levels

answer

4 primary economic objectives of a society

question

.A person who wants to work but can't find a job .Higher levels of unemployment means there is a waste of human resource and also crime, poverty, an despair are linked to it

answer

How is unemployment defined? Name one reason that people are concerned by high levels of unemployment

question

the economy becomes more prosperous as the society and industries become more productive so goods and services increase and money circulates

answer

What is economic growth?

question

1. Intensive- businesses use their resources in a new way to increase productivity and quality 2. Extensive- businesses use other resources to increase production and quality

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Name the 2 primary types of economic growth and explain the difference between them

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1. How will our products be distributed? 2. What will we produce? 3. Who will our products go to?

answer

What are the 3 questions a nation's economic decision makers much answer?

question

.an individual or committee takes over the duties of deciding when people should spend their money or save it .one criticism is why should a committee decide when a person should spend or save their money if the result will be equally as negative as a family/individual who decides to save or spend? .is it morally alright to tell someone they are wrong to save their money?

answer

Describe the command solution to the output question and list 2 criticisms of it

question

.decrease interest rates .people will have less motivation to save and will probably be prompted to spend more, which circulates more money in the economy .shows the market interest rates because when there is a higher interest rate, people don't buy into the economy, but when it's higher they do

answer

suppose an economy experiences a downturn resulting in slowed production an consumption. What will banks likely to do encourage economic growth? Why? How does this action illustrate the concept of market interest rates?

question

Labor- human labor based Adv: 1. people are versatile and trainable 2. lower unemployment Dis: 1. more hidden costs 2. the production rate isn't constant Capital- factories/machines make the products Adv: 1. Production is constant 2. No hidden costs Dis: 1. if demand increases, more capital labor is needed, but if demand later decreases, you're stuck with extra equipment 2. are not able to be versatile in area of work

answer

What are the differences between a labor intensive and a capital intensive approach? Name 2 adv. and disadv. of each

question

.primarily labor intensive .people worry that there will be too many people employed to where they either aren't qualified or don't have a job to do because there are too many people

answer

what is the most common command approach to the labor/capital ratio? What is its weakness?

question

1. share income equally (command) 2. have a safety net for those who are handicapped or can't work (market)

answer

the notion of egalitarian fairness has produced 2 main solutions to the distribution question. Describe each and note which type of economy they tend toward--command or market

question

libertarian fairness (aka economic Darwinism): whatever you own you have worked for, and if you can't work or won't work then you need to find a charity or friends/family to help you

answer

name and describe the approach to the distribution question that opposes egalitarian fairness. What nickname has it earned? explain

question

T

answer

immigration can assist in economic growth (t/f)

question

F

answer

invention is a mark of extensive growth (t/f)

question

T

answer

when interest rates rise above the market interest rate, spending on consumer goods is discouraged and saving is encouraged (t/f)

question

F

answer

low unemployment is always a sign of economic prosperity (t/f)

question

1. Love others as we love ourselves 2. Do good to others and be caring and giving--help them know scripture 3. Do all works to glorify God .One person may be in poverty because they aren't working, so the Christian should use #2 on the list and help the see that God doesn't approve of laziness .however, if someone is handicapped, then a Christian should do #1-2 and love the person and be generous and giving, and to do it wholeheartedly (#3)

answer

What 3 scriptural principles should guide Christians' response to the problem of poverty? How might these principles legitimately lead Christians to respond differently to one instance of poverty than they do to another? Explain and illustrate why this is so

question

social democracy

answer

transitional economic system between free markets and governmental ownership

question

privatization

answer

the government sells businesses back to private individuals

question

capitalism

answer

economic system characterized by private ownership and decision making

question

classic liberal capitalism

answer

Adam Smith's ideal economic system

question

communism

answer

government is no longer necessary since everyone is acting in the best interest of others

question

welfare state

answer

economic system that leans toward capitalism but has extremely high taxes

question

mercantilism

answer

gold and silver in the government's treasury are what is important

question

nationalization

answer

the government takes possession of key industries

question

socialism

answer

a central authority controls resources and makes economic decisions

question

state capitalism

answer

private ownership of businesses but with frequent governmental intervention

question

1776

answer

in what year did mercantilism end in America?

question

refuse to sell goods and services to foreign nations

answer

which of the following was not one of the strategies of mercantilism: a. sponsor expeditions to locate gold and silver b. refuse to sell goods and services to foreign nations c. encourage colonization d. arrange all foreign relationships so that competition is limited

question

let alone

answer

what does laissez faire mean?

question

individuals own a majority of the factors of production

answer

which of the following is not one of the distinguishing characteristics of a capitalistic economy: a. workers decide all questions of policy for their particular business b. individuals own a majority of the factors of production c. the government does not own the businesses that are cornerstones of the economy

question

because it is in their best interest to do so

answer

according to Adam Smith, why do the butcher and baker provide our dinner?

question

radical socialism

answer

in which of the following economic systems does the government not exist: a. social democracy b. classic liberal capitalism c. pure communism d. radical socialism

question

shoe factory

answer

over which of the following would a social democracy be least likely to assume control: a. hospital b. nuclear power plant c. telephone company d. shoe factory

question

favorable

answer

A ___ balance of trade is said to exist when a nation sells more goods and services than it purchases

question

The Wealth of Nations

answer

In his book ___, Adam Smith refuted the economic policies of mercantilism

question

class struggles

answer

According to Karl Marx, "The history of all hitherto existing society is the history of ___."

question

by colonizing new territories they acquired new supplies of the factors of production, which enabled them to produce goods that other nations couldn't

answer

Why did mercantilism promote colonization?

question

that money is wealth

answer

According to Adam Smith, what was the root problem with mercantilism?

question

1. Protect citizens from foreign aggression 2. Protect citizens' rights from infringements by others 3. Provide public goods

answer

According to Adam Smith, what are the three principal functions of government?

question

a public good is anything that is used everyday/benefits pretty much the whole nation, but no company would pay or produce it, so it falls on the government to do: ie highways. If private businesses made new highways, they'd have no way to get people to pay for it and would probably end up losing money on it and go out of business. The government can just use tax dollars.

answer

in your own words define a public good and give an example of one. Why do public goods often become the responsibility of the government?

question

Radical capitalism dismisses having a government in place, which is unscriptural because it denies the notion of submitting to higher authority, like to God.

answer

Why is radical capitalism unscriptural?

question

liberty

answer

In the eighteenth century, what did the word liberal mean?

question

can't forecast what the economy will look like

answer

What result from fluctuation between inflation and deflation?

question

1500-1776

answer

Date of mercantilism

question

1. Exploration 2. Trade 3. Domestic manufacturing 4. Colonization 5. Alliances/treaties/conquest

answer

Mercantilism goals:

question

private individuals own factors of production and make almost all significant economic decisions

answer

Capitalism

question

central authority, committee, or people in common own factors of production and make nearly all significant economic decisions

answer

Socialism

question

communism. centralized socialism. social democracy. state capitalism. classic capitalism. radical capitalism

answer

Social classes from communism to capitalism

question

private citizens own the vast majority of natural resources, financial capital, and labor, but government makes decisions

answer

State capitalism

question

welfare state

answer

What is a nation with extreme state capitalism?

question

.high taxes (over 50%) .funds distributed to care for each person from "cradle to grave"

answer

attributes of a welfare state

question

more exports than imports

answer

what is the favorable balance of a mercantilist country?

question

1. limit government 2. personal responsibility 3. profit seeking

answer

major traits of laissez faire

question

no government (all sharing)

answer

1 significant similarity between radical capitalism and communism

question

"utils"--provide some measure of utility

answer

Adam Smith's definition of wealth

question

class struggles between bourgeois and proletarian

answer

Karl Marx saw economic history characterized by what?

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