Economic Theory

According to the iron law of wages, how does an increase in population affect wages?

• A population surplus leads to lower wages
• A population surplus leads to a reduction in crime and sickness
• A population surplus leads to an increase in job opportunities
• A population surplus lead to higher wages

How are the economic theories of Thomas Malthus and David Ricardo similar?

• Malthus and Ricardo both believed that a lack of profit caused businesses to exploit workers
• Malthus and Ricardo both believed the governments should take a laissez faire approach to economics.
• Malthus and Ricardo both believed the plight of the working class was inevitable 
• Malthus and Ricardo both believed poor working conditions and wages was the fault of the underclass being uneducated.

Which idea is most closely associated with laissez faire economics?

• Communes

• Trade unionism

• subsistence agriculture

• Free trade

Adam Smith would most likely agree with which statement?

• Revolution is the only solution to economic problems.

• Five-year plans are necessary in order to industrialize.

• All nations would benefit from an agricultural economy.

• Government should follow a laissez-faire policy.

Adam Smith’s Wealth of Nations stressed the importance of

• tradition

• supply and demand

• large corporations

• government ownership

Who is the founder and creator of capitalism?

• Adam Smith
• Karl Marx
• Friedrich Engels
• Bernie Sanders

People that buy a product

• Consumers
• producers
• goods
• services

Wrote the Wealth of Nations

• Karl Marx

• Adam Smith

A Malthusian catastrophe is when

• the population is lower than food supply

• the population exceeds food supply

• the population dances

• the population populates the people

Smith's two laws of economics are:

• The Law of Supply ad Demand and the Law of Competition

• The Law of Supply and Demand and the Law of Populations

• The Law of Competition and the Laws of nature

• The Laws of Supply and Demand and the Laws of the local police force