2301 - Chapter 1 Review Quiz

What is the primary focus of economics?

• Mathematics and finance

• Human decision-making in the face of scarcity

• Business and profit maximization

• Technological advancements

Who first put forth the idea of division and specialization of labor?

• Karl Marx

• John Maynard Keynes

• Adam Smith

• Milton Friedman

What does macroeconomics primarily examine?

• Individual spending habits

• The economy as a whole

• Specific business strategies

• Local market trends

In which economic system does the government make all the decisions regarding what, how, and for whom goods and services are produced?

• Capitalism

• Socialism

• Communism

• Mixed economy

What is the term for the study of individual markets and the behavior of consumers and firms?

• Microeconomics

• Macroeconomics

• Econometrics

• Behavioral economics

In the circular flow model, which two markets do households and firms interact in?

• Financial and labor markets

• Goods/services and labor markets

• Tax and insurance markets

• Money and capital markets