Economics Quiz

Throughout history, the natural state of human life has been

• poverty and subsistence.

• prosperity and wealth.

• peaceful and without scarcity.

• marked by a declining standard of living.

Ethics asks how people can

• tell the truth no matter what.

• make the world better than it would be without them.

• abide by the laws of their community no matter what.

• none of the above.

A society's economy is

• organized by the society's government.

• a source of competition, discord, and strife.

• its foundation for cooperation.

• all of the above.

Someone might choose to work for others instead of as an entrepreneur because

• it involves less risk and greater regularity.

• it is easier to become famous and wealthy.

• entrepreneurs cannot learn new things.

• entrepreneurs must sacrifice their ethics.

In early history, trade was helped to develop by

• secure property rights.

• coinage.

• language.

• all of the above.

Something is a resource if

• it is a form of land, labor, or capital.

• it is a tangible object.

• humans see it as potentially useful.

• someone owns it.

Scarcity persists because

• countries have failed to achieve continuous full employment.

• economic wants exceed available productive resources.

• individuals have frivolous desires.

The role of an institution is to

• help people coordinate their activities.

• exclude immigrants and unwanted individuals.

• command individuals to produce certain goods.

• ensure that all individuals receive a fair share.

Earning money is usually a sign that you have acted shamefully.

• agreed.

• benefited others.

• cheated or broken the law.

Adam Smith saw in markets the potential to

• equalize the distribution of wealth among all.

• free common individuals from starvation and servility.

• place the most knowledgeable people in positions of authority.

• enslave large social groups.