Management and Principles: Specialization, Trade, and MacroEC

Which of the following is not a factor of production?

• Land

• Labor

• Weapons

• Capital

A ____ is when individuals control the factors of production, private property, and who gets what.

• free (capitalist) economy

• controlled economy

• mixed economy

• communist society

Most nation have a ____ economy. Both free markets and government help.

• free (capitalist)

• controlled

• mixed

• socialist

____ is a successful, flourishing, or thriving condition,

especially in financial respects; good fortune.

• Laissez-faire

• Prosperity

• Depression

• Inflation

___ is a policy or attitude of letting things take their own course, without interfering.

• Laissez-faire

• Prosperity

• Socialism

• Communism

________ = a classless society.

• Socialism

• Communist

• Capitalism

• Oligarchy

How does the specialization of the division of labor make each worker more productive?

• Specialization allows workers to focus on producing one product to the best of their ability.

• Specialization leads to inflation.

• Everyone gets rich.

• Specialization isn't good for the economy because it is wasteful.

___ believed that the specialization of the division of labor made a nation wealthy .

• Adam Swann

• Adam Smith

• Shirley Smith

• Adam Shirley

___ is a benefit, profit, or value of something that must be given up to acquire or achieve something else.

• Prosperity

• Opportunity Trade

• Opportunity Cost

• Trade

Trading with a nation instead of trying to produce every item we need is much better.

• True

• False