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Ch1 Incentives

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

Laissez-faire means...

a)

natural rights

b)

iron law of wages

c)

let it be

d)

tabula rasa

2.

Who developed laissez-faire economics as a en economic philosophy?

a)

Adam Smith

b)

Karl Marx

c)

John Locke

d)

Louis XVI

3.

Adam's Smith most influential work was

a)

Wealth of Nations

b)

Granting Patents

c)

Starting the Economy

d)

None of these

4.

Adam's Smith is best know for publishing "An Inquiry into the Nature & Causes...". It is actually known as

a)

None of these

b)

The Wealth of Nation, divided into six books

c)

Adam Smith Biography in a newspaper interview

d)

Patent Law introduced in a magazine article

5.

What is Adam Smith's Division of Labor?

a)

divide the work into morning shift or afternoon shift

b)

changing work from full time to part time

c)

breaking down processes into specific steps so one person could develop a specialty

d)

None of these

6.

According to Adam Smith what was the most efficient way to produce pins? Hire one employee to do everything? or Hire three employees so each could do each part?

a)

None of these

b)
c)
d)

None of these

7.

Adam Smith is considered the _____________ of Capitalism.

a)

Son

b)

Father

c)

Child

d)

Parent

8.

An example of how a Business Incentive MOTIVATE Workers to do their best is

a)

offer "employee of the month" reward

b)

threatening them with getting fired

c)

reduce a workers pay

d)

None of these

9.

What is an incentive?

a)

encourages specific behavior and helps to motivate an individual to take specific action

b)

a bribe to make you afraid

c)

an offer to make a deal that causes worry if you do not act a specific way

d)

none of these

10.

An example of how a Business Incentive MOTIVATE Consumers to buy their product is

a)

offer "children eat free" with paid adult at a restaurant

b)

threatening a customer with no more merchandise

c)

place fear into customer to buy or get a price increase

d)

None of these

11.

What is an example of a Government incentive to a PRODUCER?

a)

Move your company to a third world country and pay less taxes.

b)

Create an energy efficient building for your company and pay less taxes.

c)

Create more jobs outside the United States and receive a tax break.

d)

None of these

12.

The government will encourage citizens (employees) to save for retirement by

a)

threatening employees to pay more taxes if they do not save all of their pay check

b)

creating commercials with tax payer money

c)

None of these

d)

allowing employees to create a 401K (retirement savings) account that reduces their taxes