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Basic Economics

Total questions: 19

Worksheet time: 19mins

Name
Class
Date
1.

Economics is:

a)

the branch of knowledge concerning wealth and how it is produced, consumed and distributed.

b)

the branch of knowledge concerning politics and how political power is produced, consumed and distributed.

c)

the branch of knowledge concerning sovereignty and how it is produced, consumed and distributed.

2.

Adam Smith is known as the

a)

Father of Wealth

b)

Father of Politics

c)

Father of Economics

3.

Adam Smith is known for his book:

a)

The Wealth of States

b)

The Wealth of Nations

c)

The Wealth of Government

4.

Mercantilism was a system in which a nation's government, through ____ and ____ controlled most aspects of the economy.

a)

incentives, consumer sovereignty

b)

regulations, taxes

5.

The book that Adam SMith published in 1776 argued that the type of economic system that would benefit a society and nation most was a:

a)

command system

b)

free market system

c)

mercantile system

d)

none of the above

6.

Adam Smith believed the nation's economy would be successful if it had

a)

lots of government involvement

b)

many regulations and taxes

c)

no or limited government interference

d)

none of the above

7.

Adam Smith believed that the key reason why a free market system would be successful for a nation was because humans

a)

are motivated by self interest

b)

would always do the right thing

c)

are not greedy

d)

all of the above

8.

In a free market system, Adam Smith believed the natural forces (invisible hand) would lead to

a)

higher prices and fewer choices

b)

fair prices for goods and more choices

c)

a surplus of goods

d)

none of the above

9.

The belief that economics and businesses function best when there is no interference by the government is called

a)

mercantilism

b)

command system

c)

laissez faire

d)

none of the above

10.

Limited or lack of supply / resources is called

a)

poverty

b)

scarcity

c)

surplus

d)

none of the above

11.

When two or more suppliers exist in a market, _____ is created.

a)

free market

b)

economy

c)

competition

d)

collaboration

12.

Mercantilism was an economic system that caused:

a)

sovereignty and wealth for all

b)

oppression, colonization and slavery

c)

none of the above

13.

The specialization of jobs where larger jobs become separate jobs with more specialized tasks is called

a)

the division of economy

b)

the division of the workforce

c)

the division of labor

d)

none of the above

14.

The idea that humans are driven for their own preservation / lives is called

a)

self interest

b)

altruism

c)

competition

d)

all of the above

15.

According to this supply and demand graph, when there is a high quantity of goods, the price _____

a)

increases

b)

decreases

c)

stays the same

16.

When there is less quantity of goods (supply), the price

a)

increases

b)

decreases

c)

stays the same

17.

Something that motivates an individual or business to behave or produce favorably is called a/n

a)

reward

b)

grant

c)

incentive

d)

all of the above

18.

An example of a farming/agriculture incentive would be:

a)

a tax break for farmers

b)

$10,000 Starter Funds

c)

equipment and tools

d)

all of the above

19.

An example of an incentive to grow the fishing industry would be:

a)

a fishermen's co-op

b)

government subsidies for fishermen to purchase or rent affordable boats

c)

government grants to purchase fishing equipment and tools

d)

all of the above