Economic history

What is the central economic problem that all economies are working towards solving?

• Equal distribution of resources

• Unlimited resources and limited consumption

• Limited resources and unlimited consumption

• No resources and no consumption

Which school of economics is considered the first incarnation of economics as a separate academic pursuit?

• Austrian School

• Mercantilism School

• Keynesian School

• Classical School

Who contributed to the theory of Marginal Utility in the Austrian School of Economics?

• Carl Menger

• Friedrich Hayek

• Adam Smith

• John Maynard Keynes

According to the Austrian School, what is the theory that argues goods provide a utility, but their utility decreases for every extra unit of that good?

• Theory of Diminishing Returns

• Theory of Marginal Utility

• Theory of Comparative Advantage

• Theory of Supply and Demand

Who is considered the most influential economist of the 20th century and introduced countercyclical fiscal policy?

• Adam Smith

• Friedrich Hayek

• John Maynard Keynes

• Carl Menger

What is the purpose of countercyclical fiscal policy introduced by John Maynard Keynes?

• To eliminate the business cycle completely

• To increase taxes during economic downturns

• To smooth out the business cycle by influencing consumer spending

• To decrease government spending during economic booms

Which school of economics believes that consumers are the center of modern economies and their feelings impact the economy as much as real forces?

• Mercantilism School

• Keynesian School

• Austrian School

• Classical School

What is the Subjective Theory of Value as proposed by the Austrian School of Economics?

• An item is worth a function of how important it is

• An item is worth the cost of production plus profit

• An item is worth the sum of materials and labor put into making it

• An item is worth the average market price

What is the role of government intervention in free markets according to the Classical School of Economics?

• To manipulate supply and demand

• To regulate prices of goods and services

• To ensure contracts are upheld and prevent fraud

• To control all aspects of production and distribution

Which school of economics believes in free markets and trade?

• Classical School

• Mercantilism School

• Austrian School

• Keynesian School