Economics - Preassessment

Front

What book, written by Smith, is considered by many to be the cornerstone of capitalism and was Smith's most famous work?

Back

The Wealth of Nations

Front

Smith argued that a free exchange should be created because ...........

Back

countries are better off from the exchange.

Front

What type of economic system did Adam Smith support?

Back

a free market system

Front

Adam Smith believed that people naturally think of their own self-interest, but that we also have the capacity to understand and be concerned about other people.

Back

True

Front

Who is the "Father of Economics and Modern Capitalism"?

Back

Adam Smith

Front

Smith believed that the economy operated according to three natural laws involving this concept...

Back

self-interest

Front

Adam Smith believed that competition and self-interest act as a(n) ___________ that regulates the free market.

Back

Invisible Hand

Front

This is an example of an economic model called a______________

Back

Production Possibilities Curve

Front

the condition that results because people have limited resources but unlimited wants

Back

scarcity

Front

What is opportunity cost?

Back

the opportunity one has to give up in order to gain something else