Economics Test 1

What is Economics?

• Economics is a social science that studies and influences human behavior

• Economics is the study of human anatomy and medical treatments
• Economics is the study of ancient civilizations and their cultures
• Economics is the study of weather patterns and climate change

What is Macroeconomics?

• The study of human behavior

• The study of consequences of spending money

• Studies the Stock and Real Estate Market

• The study of the whole economy

What is Microeconomics

• Study of ancient civilizations
• Study of weather patterns
• Study of individual economic units
• Study of outer space

What are the Factors of Production?

• Land, labor, capital, and entrepreneurship
• Water, air, and sunlight
• Money, technology, and resources
• Education, skills, and training

What is a want?

• A type of food
• A desire or wish for something.
• A type of insect
• A type of clothing

What is a need?

• A want or desire
• A surplus or excess
• Something optional or unnecessary for survival
• Something essential or necessary for survival, growth, or well-being

Adam Smith wrote which book?

• The Catcher in the Rye
• Moby Dick
• The Art of War
• The Wealth of Nations

What is Scarcity?

• Abundance of resources
• Limited availability of resources
• Equal distribution of resources
• Unlimited availability of resources

Define Market Economy

• In a pure market economy there is no government involvement in economic decisions.

• An economic system based on government control of prices and production
• An economic system based on bartering and trade without the use of currency
• An economic system based on equal distribution of wealth among all citizens

Define Command Economy

• An economic system in which decisions about the production and distribution of goods and services are made by a council of experts.
• An economic system in which the government and individuals share decisions about the production and distribution of goods and services.
• An economic system in which the government makes all decisions about the production and distribution of goods and services.
• An economic system in which individuals make all decisions about the production and distribution of goods and services.