Economic Reasoning Review Unit 8

#1 Adam Smith wrote what book looking at economies and why some countries are successful and others live in poverty?

“Wealth of Nations”

#2 Adam has narrowed his college selection down to 5 schools. He will rank them 1-5 in the order he will decide where to attend. What is Adam’s Opportunity Cost University of Kentucky 4 University of Louisville 1 Notre Dame 2 North Carolina 5 Indiana 3

Notre Dame

#3 What are the three individual resources?

#3 Time, money, and skill

#4 Who is the father of Communism and wrote the “Communist Manifesto”?

#4 Karl marx

#5 What type of economic system is shaped largely by customs or religion?

#5 Traditional Economy

#6 The tools, machine, and buildings used to produce goods and services is the definition of?

#6 Capital

#7 What is a physical articles that have been produced for sale or use?

#7 Good

#8 Studying an economy as a whole is what type of economics?

#8 Macroeconomics

#9 What are the three economic questions we ask when looking at an economy?

#9 What goods and services will be produced? How will they be produced? For whom will they be produced?

#10 What are two gains the a economy gets from specialization and division of labor?

#10 More efficient and productive Higher standard of living

#11 ______ is something you have to give up to receive a good or service. ________ is what you gain from that experience, good, service, etc

#11 Cost Benefit

#12 What is work done by someone else for which a consumer, business, or government is willing to pay for?

#12 Service

#13 What are the four resources of a country

#13 Natural Resources, Labor Force, Technology, Capital

#14 What is Economics?

#14 The study of how people choose to use their limited resources to fulfill their unlimited wants and needs

#15 What type of economy is based on freedom of choice and competition?

#15 Market Econony

#16 What do we call making a decision based on the best possible combination of costs and benefits?

#16 Economizing

#17 What type of economy is based on centralized planning and government controlled econony?

#17 Command

#18 _______ is when we look a the quality of life in a country

#18 Standard of Living

#19 When there is a lack of a resources or a resource that has more than one valuable use that resource is __________

#19 Scarcity

#20 Give one example for a current country that is a command economy Give one example for a current country that is a market economy