Introduction to Economics

The term "invisible hand" was Adam Smith's way of explaining the relationship between what two groups?

• The communist government and the people

• The producers and the consumers

• The government and the people

• The United States and other countries

The total value of goods and services produced within the borders of a country during a specific time period, usually one year.

• GDP
• GNI
• GDP per capita
• HDI

There are 4 _______________. They are land, labour, capital and entrepreneurship.

• Factors of Production 
• Market Economy 
• Profit 
• Economics 

Goods or services that are not necessary, but that we desire or wish for. Examples: video games, toys, concert tickets, etc.

• Demand
• Needs
• Wants
• Presents

The reason why you can't have everything you want is because of ___________________.

• Opportunity Cost
• Scarcity
• Incentive 
• Choice

Opportunity Cost is best defined as

• The value of the next best alternative that is given up due to the choice you made. 
• The price you pay to purchase something. 
• The benefit you gain by making a decision. 
• The amount of debt you take on by making a decision. 

How do you satisfy your unlimited wants in a world of limited resources?

• by making more money
• by making choices
• by stealing
• by setting a budget

Man-made resources used in the production process i.e. machines in a factory.

• Labor 
• Capital
• Household
• Revenue 

The study of how people seek ways to meet their wants and needs by making choices is called?

• Economics
• Scarcity
• Capitalism
• Entrepreneurs

What economic system is based upon consumers and producers independent decisions determining which products will be successful (sell)?

• Traditional Economy
• Control or Command Economy
• Free Market (Capitalist) Economy
• Socialist Economy