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Which economist is known for his theories on free market capitalism?

• Milton Friedman

• John Maynard Keynes

• Adam Smith

• Friedrich Hayek

Which of the following best describes a system where the government provides financial support to businesses or individuals?

• Taxation

• Subsidy

• Sales Taxes

• Corporate Taxes

What is the basic problem of scarcity?

• Unlimited wants and limited resources

• Government regulations

• Economic growth

• Decrease in human capital

What is a market economy?

• An economic system based on supply and demand with little or no government control

• An economy where the government controls all economic activities

• An economy based solely on agriculture

• An economy where trade is banned

What is a mixed economy?

• An economic system combining private and public enterprise

• An economy with no government intervention

• A purely capitalist economy

• An economy where all property is shared equally among citizens

What is human capital?

• The skills, knowledge, and experience possessed by an individual

• The physical capital like machinery

• The total wealth of a nation

• The natural resources available in a country

What does 'inflation' refer to in economic terms?

• The decrease in the value of money accompanied by a rise in the prices of goods and services

• The increase in stock market values

• The reduction of unemployment rates

• The growth in exports compared to imports

Which economic principle explains the benefits of nations engaging in specialized production and exchange?

• Comparative Advantage

• Monetary Policy

• Fiscal Policy

• Market Equilibrium

What does the term 'opportunity cost' refer to in economic theory?

• The cost of choosing one alternative over another

• The expense incurred by producing goods

• The price of raw materials

• The interest rate on loans

The government of these two Asian nations are examples of governments who restrict the economic freedoms of their citizens

• Japan & Alaska

• France & Egypt

• India & China

• China & North Korea