Economics Unit 1

What type of economic system did Adam Smith support?

• a free market system

• mixed economic system

• planned economic system

A philosophy that calls for very little or no government involvement in the economy.

• Industrial Capitalist

• Economics

• Supply and Demand

• Laissez-Faire

Adam Smith’s Wealth of Nations stressed the importance of

• tradition

• supply and demand

• large corporations

• government ownership

Capital refers to...

• The "gifts of nature" or natural resources not created by human effort.

• people with all their efforts and abilities

• the tools, equipment, and factories used in production of goods and services

• individuals who start a new business or bring a product to market.

Labor refers to...

• people with all their efforts and abilities

• individuals who start a new business or bring a product to market.

• the tools, equipment, and factories used in production of goods and services.

• The "gifts of nature" or natural resources not created by human effort.

Entrepreneurs are...

• people with all their efforts and abilities

• individuals who start a new business or bring a product to market.

• The "gifts of nature" or natural resources not created by human effort.

• the tools, equipment, and factories used in production of goods and services

A herd of cattle is an example of ...

• Land

• Labor

• Entrepreneur

• Capital

A bulldozer is an example of...

• Labor

• Land

• Entrepreneur

• Capital

A product or service is scarce when ...

• The amount available can satisfy the demands of society

• Its price far exceeds the value of the item.

• The amount available is not enough to meet the demands of society

• One company is responsible for producing the product.

The definition of Scarcity is...

• An unlimited amount of resources to meet limited wants and needs

• a city where individuals commit themselves to unlimited wants and needs

• A limited amount of resources to meet unlimited wants and needs.

• When people use time and energy to create events