Economics Test 1

The value associated with any good is directly related to what two things?

What are the four factors of production?

What do some economists list as a fifth factor of production?

Who were the French group of 18th-century economists who believed the market should be guided by "the rule of nature"?

What are taxes that governments apply only to imported goods?

 What French phrase, often connected with economics, means

"let things alone"?

Who was the founder of the Austrian school of economics?

Economics is the study of the choices that individuals and societies make concerning what activities involving goods?

Match each definition with the correct term.

• microeconomics

• material items for which people expect to pay

• market

• the study of specific components within a

  major economy

• mercantilism

•  economic system which aimed to accumulate stockpiles of gold and silver

• goods

• mechanism through which people exchange goods

Match each definition with the correct term.

• value

•  the establishment of colonies to benefit a mother country

• imperialism

• the worth that consumers attach to a good

• economic model

• an intangible item for which people expect to pay

• service

• seeks to show the relationships among the various components of an economy