Adam Smith and Economic Influence

Front

Why might some historians consider Adam Smith one of the most influential people in history?

Back

He introduced a way of thinking about economic ideas.

Front

Which of these terms is most closely related to tradeoffs? incentives, margin, markets, scarcity

Back

scarcity

Front

Economists assume people choose something when its expected costs are less than its

Back

anticipated benefits.

Front

Which statement is the best example of thinking at the margin? Options: John has six shirts and is trying to decide whether to buy a seventh., Mary observes that the average cost of shoes is higher than last year., David decides to volunteer this summer instead of working for pay., Jane wants to buy a car but decides she cannot afford the insurance.

Back

John has six shirts and is trying to decide whether to buy a seventh.

Front

The exchange of one benefit or advantage for another that is thought to be better

Back

Tradeoff

Front

The idea that people benefit by focusing on what they do well and then trading with others

Back

Trade makes people better off

Front

Adam Smith's metaphor to explain how an individual's pursuit of economic self-interest can produce what is societally necessary

Back

Invisible Hand

Front

Which of the following is a major reason the standard of living in Japan is much higher than in Nigeria?
Options: greater human capital, richer natural resources, more foreign residents, fewer temporary shortages

Back

greater human capital

Front

What is the best title for the list below? Options: Capitalist, Entrepreneur, Investor, Laborer

Back

Entrepreneur

Front

When Amy returns an amazing library book without finishing it so she won’t have to pay a late fee, what is her opportunity cost?

Back

finishing the book